Upward Revisions To Our Dong Forecasts

We are raising our Vietnamese dong currency forecasts, in view of the tremendous appreciatory pressures the unit is facing. In our last forecast (see January 18 2007, VND: Still Awaiting The Turnaround), we noted that the State Bank of Vietnam's long-held depreciation peg was becoming unsustainable, but we nonetheless anticipated the dong sliding by 1% to VND16,200/US$ by the end of 2007, before appreciating by 1% to VND16,040/US$ by the end of 2008.

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