Signs of foreign exchange rate crisis and solutions

Abstract

Since Vietnam's admision to WTO Vietnam's economy has integrated itself deeply into the globalization process, the influx of foreign direct investment (FDI) and foreign indirect investment (FII) has increased a great deal, bringing in both opportunities and challenges. One of the challenges is how to manage foreign currency properly, otherwise it might create instable foreign exchange rates, leading to currency crisis.

That is why anticipating signs of foreign exchange rate crisis and giving the timely warnings about it has become an urgency for Vietnam. The writer proposes a solution to it in this article.

The main contents of  the article include

1. Signs of foreign exchange rate crisis

2. Foreign exchange rate crisis is unlikely to happen overnight fore the following reasons

3. Solutions