Exchange rate and Exchange market pressure: The case of Vietnam

Abstract

The paper aims at analyzing recent exchange rate volatility in the Vietnam foreign exchange market based on the exchange market pressure. The study found that exchange market pressure index has been increasing but it was still lower than the threshold set by a methodology of Eichengreen (1995). The last part provided exchange rate forecast at the end of the year 2018 and suggested policy recommendations for stabilizing exchange rate and foreign exchange market.