Introduction to the Monetary Unit of Vietnam
Vietnam is a country located in Southeast Asia, and its currency is the Vietnamese dong (VND). The dong is the official currency of Vietnam and is issued by the State Bank of Vietnam. The dong has been the currency of Vietnam since 1978, and it is used by over 90 million people in the country. The dong is divided into 100 hao and is denoted by the symbol ₫. In this article, we will discuss the history, features, and usage of the Vietnamese dong.
History of the Vietnamese Dong
The Vietnamese dong has a long and complex history. It was first introduced in 1946, shortly after the end of World War II. At that time, it was the currency of the French-backed State of Vietnam. The dong was initially pegged to the French franc and was equal to 1.2 francs. In 1953, the dong was revalued and pegged to the United States dollar at a rate of 1 dong to 0.2 dollars.
In 1978, the dong was revalued again and was pegged to the Soviet ruble at a rate of 1 dong to 0.2 rubles. This rate remained in place until the collapse of the Soviet Union in 1991. In the early 1990s, the dong was revalued again and was pegged to a basket of currencies. This rate remained in place until 2003, when the dong was revalued once more and was pegged to the U.S. dollar at a rate of 1 dong to 0.0014 dollars.
Features of the Vietnamese Dong
The Vietnamese dong is a fiat currency, meaning that it is not backed by any physical commodity such as gold or silver. It is issued by the State Bank of Vietnam and is legal tender in the country. The dong is divided into 100 hao, and coins are issued in denominations of 200, 500, 1000, 2000, and 5000 dong. Banknotes are issued in denominations of 10, 20, 50, 100, 200, 500, 1000, 2000, 5000, 10,000, 20,000, 50,000, and 100,000 dong.
The dong is printed on high-quality paper and is designed to be durable and difficult to counterfeit. The notes feature a variety of security features, including watermarks, security threads, and holograms. The notes also feature images of famous Vietnamese historical figures and landmarks.
Usage of the Vietnamese Dong
The Vietnamese dong is the official currency of Vietnam and is used by over 90 million people in the country. The dong is used for all transactions, including the purchase of goods and services, the payment of taxes, and the transfer of money. The dong is also used for international transactions, although it is not widely accepted outside of Vietnam.
The dong is also used as a store of value, and it is often used to hedge against inflation. The dong is also used as a unit of account, and it is used to measure the value of goods and services.
Conclusion
The Vietnamese dong is the official currency of Vietnam and is used by over 90 million people in the country. The dong has a long and complex history, and it has been revalued several times since it was first introduced in 1946. The dong is a fiat currency, and it is issued by the State Bank of Vietnam in coins and banknotes. The dong is used for all transactions, including the purchase of goods and services, the payment of taxes, and the transfer of money. The dong is also used as a store of value and a unit of account.
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