Hanoi - Local analysts were divided on the reasons for Vietnam's decision to widen the trading band of the dong against the US dollar from 3 per cent to 5 per cent effective Tuesday.
The move effectively devalues the dong against foreign currencies. The government reference rate remained unchanged from Monday to Tuesday at 16,980 dong to the dollar, but the wider trading band allowed banks to raise their rates from 17,489 to 17,700 dong to the dollar.