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Devaluation by S. Vietnam

(N.Z. Press Assn —Copyright) ■ SAIGON, Feb. 5. South Vietnam has devalued the piastre for the I eleventh time in a little more than a year, in an effort to catch up with mounting inflation, and to retard the drain on fast-dwindling foreign reserves. The new rate is 575 piastres to one United States dol- i lar. Economists say that South, Vietnam has been unable to' devalue the piastre as much: as the rate of inflation, which was 65 per cent in 1973; the devaluation has totalled 19 per cent. Some experts say that devaluation itself causes more inflationary pressures, and they compare it to a dog charing its own tail. but. they add, the Government has no other choice. Devaluation at: least curbs trading on the I black market, and it also; encourages exports. South Vietnam’s foreign re- i serves have dropped to below SUSI2Sm, and the Government will have to sharply ; reduce imports in the coming year. |

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/CHP19740205.2.91

Bibliographic details

Press, Volume CXIV, Issue 33451, 5 February 1974, Page 9

Word Count
162

Devaluation by S. Vietnam Press, Volume CXIV, Issue 33451, 5 February 1974, Page 9

Devaluation by S. Vietnam Press, Volume CXIV, Issue 33451, 5 February 1974, Page 9