New Currency Rates In S. Vietnam

Press, Volume CVI, Issue 31090, 20 June 1966, Page 13

New Currency Rates In S. Vietnam

(N.Z. Press Assn.—Copyright) SAIGON, June 19. The South Vietnamese Government yesterday announced a new series of currency rates, which officially amounted to a minor devaluation, but actually changed little and left the official rates far short of the black market.

At the same time, the Government announced salary increases for all State employees. In an effort to straighten out the nation’s tangled finances, it abolished many previous economic decrees. The changes were announced by the Minister of Economy and Finance, Au Truong Thanh. The new official exchange rate for most transactions is 80 piastres to one United States dollar.

The previous official rate was 35 to one United States dollar, but most business had been transacted at a modified rate of 73 to one United States dollar. Some American military and special rates granted by the Government had been as high as 118 to the United States dollar.

While the Ministry pegged the new rate at 80 piastres to the United States dollar, a special addition of 38 piastres

was included in the decree. This means that in the future almost all transactions will be conducted at a rate of 118 piastres to the dollar.

The previous system of varying rates will largely be abolished, although some special arrangements will remain.

The Minister said that the measures were designed to curb inflation and stabilise the economy within three months.