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Vietnam is taking steps to strengthen the Dong
against other currencies
Planning a trip to Vietnam does take a considerable amount of thought. There is
so much to see and do in this country of 86 million people. Vietnam has had its
share of wars and hostile takeovers, but all of that is behind this economic
dynamo now. Tourism and exports are injecting foreign dollars into the economy
and the government is building some hefty cash reserves, although they have
taken a beating in 2009 for the several different reasons. The unofficial rate
of exchange was 19,800 per dollar in November and that prompted some government
officials to start talking about devaluing the Dong, but the plan now is to try
to boost exports, which may not be the easiest or best choice to make at this
point in time.
All of the uncertainty about the Dong makes planning a trip to Hanoi or Ho Chi
Minh City a challenge when it comes to exchanging currency. Waiting until you
reach your destination to exchange currency to Dong can be expensive. The
Official rate for a U.S. Dollar to Dong exchange has been fluctuating daily and
no one is sure when it will stabilize. Foreign investors are not buying
government bonds because there is still a strong chance that the Dong will be
devalued.
What’s the best strategy to use to convert currency for a trip to Vietnam?
If you want to enjoy the rich culture, the beautiful beaches and the exciting
cities in Vietnam without blowing an atomic size whole in your budget, do some
research and find a professional currency broker. A professional broker studies
the exchange market hourly and will help you plan an exchange strategy that
works for your budget. A broker will show you how to average your exchanges
while you’re planning the trip so you can offset sudden value changes that can
have a negative impact on your budget. A currency broker will give you a real
time rate and will not charge you excessive transaction fees and surcharges that
are standard when you exchange money at a bank or when you use your credit card
to make purchases.
If you wait to
trade currencies in Hanoi or another Vietnamese
city you will have to pay hefty transaction fees, plus there may be other
unexpected charges that can be budget busting expenses. Stay away from airport
exchange merchants, and forget about exchanging currency at your hotel or in a
retail shop, they use an inflated exchange rate and add fees to cover their
overhead. Bring one credit card for an emergency, but use your ATM card if you
need to exchange money or make purchases. The transaction fees are lower and the
exchange rate is usually better. ATM machines are available in the bigger
cities, especially in areas where there is a lot of tourist traffic.
Other Travel Tips
The Vietnamese government allows you to carry $5,000 cash through customs, if
you have more than that, you must declare it, or it will be confiscated. Always
carry cash in a leg pouch, money belt or hidden pocket that’s secure and out of
sight. Use hotel safes when you reach your destination and remember that common
sense is your best security weapon when you use it.
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