Vietnam's central bank takes dual measures: stabilizing the exchange rate and the gold market to respond to global turmoil

⑴ The central bank of Vietnam stated on Tuesday that it is prepared to intervene to ensure stability in the foreign exchange market and has pledged to curb inflation and improve the liquidity issues facing the banking system. ⑵ Pham Chi Quang, Director of the Monetary Policy Department of the central bank, pointed out that the Vietnamese dong is under pressure from complex and unpredictable global conditions as well as domestic challenges. ⑶ Against this backdrop, the central bank is flexibly managing the dong's exchange rate to help absorb external shocks, while also coordinating other monetary policies to stabilize the domestic foreign exchange market. ⑷ Deputy Governor Pham Thanh Ha said that, driven by escalating geopolitical tensions, military conflicts, and intensified global strategic competition, gold prices are expected to remain highly volatile during the first three months of 2026. ⑸ Pham Thanh Ha added that the central bank will closely monitor developments and take action when necessary to strengthen management and stabilize the gold market. ⑹ The central bank’s dual measures reflect the dual pressure on emerging market currencies and precious metal prices brought about by the escalation of conflict in the Middle East and the global trade uncertainty triggered by Trump’s tariff remarks.