You can make the remittance via your bank, or via dedicated international transfer service.īank: It’s natural to consider your bank as a convenient option when sending money to Vietnam. If you’re looking to convert dollars, euros, pounds, riyals or another currency into Vietnamese dong, there are two main options to choose from. Sending money to Vietnam: converting to dong The easiest way to send money to Vietnam without paying over the odds is, quite simply, to find a remittance service that doesn’t charge high fees or apply a disadvantageous exchange rate. There has also been some controversy in recent times with the US Treasury alleging in 2020 that the Vietnamese government had been intervening to deliberately keep the dong low to make exports from Vietnam cheaper.įortunately, you don’t have to delve into the thorny complexities of international economics in order to land the best dong exchange rates. Years of inflation, and a relative lack of interest in dong by foreign traders, have helped keep the value of the currency low. The reasons for this are multi-faceted and rooted in long-standing socioeconomic factors stemming back to 1986, when the country shifted from a purely centrally-run economy to more of a free market economy. This explains why you’re able to convert single units of currencies such as dollars and euros into such a large amount of dong. Issued by the State Bank of Vietnam, Vietnamese dong is one of the weaker currencies in the world right now. You may also like: 5 Surprising Facts about Vietnamese Money Why can Vietnamese dong conversion be so high? The key thing to take away from all of this is that sending money to Vietnam can result in your recipient getting different amounts in dong depending on the exact moment you choose to make the remittance. If for example there’s a new political development in the country, it might have significant repercussions for how the currency is valued on the global markets. Demand for the currency by international traders.There are a number of elements that can influence exchange rates, including: In fact, shifting rates mean that the conversion amount may change from one minute to the next. Several months before, perhaps you would have been able to buy 23,410 dong with your single US dollar. It’s important to note that the relationship between currencies will fluctuate. This tells you that, at this precise moment in time, you can purchase 22,656 dong with one US dollar. Checking the exchange rate, you see that 1 USD = 22,656.00 VND (the hypothetical exchange rate). Let’s say you’ve moved from Vietnam to the United States, and want to send money back to your relatives. ![]() In other words, it lets you know how much of a particular currency you can purchase with the other. An exchange rate tells you how two currencies compare with each other, value-wise.
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