Exchange rate policy and de-dollarization in Vietnam

Abstract

The paper aims at reviewing exchange rate development in 2016 based on effectiveness of a new exchange rate
arrangement implemented by the State Bank of Vietnam since 4 January 2016. It found that with the new mechanism,
Vietnam’s FOREX seemed to response positively to domestic and external shocks. In the second part, the paper
evaluates impacts of exchange rate policy measures on de-dollarization process in Vietnam. Finally, recommendations
for exchange rate policy and de-dollarization in Vietnam in future.