The idea that investors should put their money into the Vietnamese currency because it is set to be revalued has regained attention online recently. Photo: 123RF
Currency speculators are being warned to take care with suggestions that investing in Vietnamese dong could propel them to riches.
The idea that investors should put their money into the Vietnamese currency because it is set to be revalued has regained attention online recently.
It is a similar proposition to that sometimes discussed in relation to the Iraqi dinar. US authorities took legal action against scammers who extracted millions from people investing on the expectation that a revaluation would make the currency much more valuable, US reports said.
Rupert Carlyon, founder of Koura Wealth, said he could understand where the idea had come from and why it had resurfaced.
"Currently the Vietnamese are controlling their currency and maintaining a peg against the US dollar. A weak Vietnamese dong is viewed as important to maintain the export economy.
"Currency manipulation is one of [US President Donald] Trump's big hates and he has often berated countries for not letting their currency rise. His view is that by artificially weakening their currencies, it benefits exporters at the expense of the US.
"People will be betting that he will pressure them to give up on the US dollar peg as part of the trade deal and rapprochement with the US."
But Carlyon said it was far from the sure bet that some internet commentators were making out.
"It is a very risky play… emerging markets' currencies are highly volatile and removing the peg could create massive volatility, so you could lose as well as win.
"It's also important to point out that most of what is meant to happen with the trade deals has not actually happened, countries are agreeing to stuff and then doing nothing about it."
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