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Economic and Political History of Vietnamese Dong

Vietnamese Dong is the currency of United Vietnam since May 3, 1978. The State Bank of Vietnam issues the currency. Dong derives from dong tien literally meaning money and refers to the Chinese bronze coins of the dynastic era of China and Vietnam. Vietnamese currency has its own little history since the mid twentieth century. The Viet Minh government replaced the French Indochinese Piastre in 1946 by Dong. Eventually this government became the government of North Vietnam. South Vietnam continued with Piastre. However, when Saigon fell, this currency was changed into Liberation Dong. North and South Vietnam were reunified in 1978, and the Dong was also unified. Before that the Viet Minh government devalued the Dong twice at the rate of 100:1 and 1000:1 in 1951 and 1958 respectively. On reunification one dong equalled to 1 northern Dong and 0.8 Southern Dong. Initially, in 1978, the State bank of Vietnam issued notes of denominations of 1, 5, 10, 20 and 50 Dongs. As inflation came to rule Vietnam in mid 1980s, notes and coins of other denominations were issued. On 14th September, 1985 the dong was devalued again at 10:1 i.e.10 old Dongs for 1 new Dong. This pushed and almost perpetuated the chronic inflation in Vietnam. In 1978, aluminium coins of denominations of 1, 2 and 5 hao and 1 dong were introduced. The coins were minted in the Berlin mint of German Democratic Republic. After that, no coins circulated for a long time due to high inflation. Even commemorative coins of 1986 issued in copper, brass, silver and gold were not in circulation. As coins evaporated The State Bank of Vietnam issued 2 and 10 dong notes in 1980 and 30 100 dong notes in 1981. In 1985 notes of denominations of 5 hao to 500 dongs were introduced. As inflation became endemic notes of denominations 200, 1000, 2000, 5000 dongs were introduced in 1987. In 1990, notes of 10000 and 50000 dongs and in1991 notes of 20000 dongs were issued. A note of 100000 dong was introduced in1994, a 500000 dong note in 2003, and a 200000 dong note came in 2006. The State bank Of Vietnam began issuing coins on 17th December 2003. People were excited to see the reappearance of coins of 200, 500, 1000, 2000 and 5000 dongs. These new coins were minted by the Mint of Finland. Earlier the Vietnamese were forced to exchange bank notes with tokens from a vending machine before purchasing anything. Meanwhile, five bank note series appeared confusing to the citizens as the notes did not have any unified theme on their designs. The government withdrew these series bank notes on 7th June 2007. These were cotton notes of 50000 and 100000 dongs. The Vietnam currency presently has regular exchange rates against all major currencies of the world. One US Dollar brings about 2032 dongs, whereas one Euro draws 27230 dongs, and one Pound of Great Britain costs 33524 dongs. There are enough authentic websites to buy and sell the Vietnamese Dong. To know more about Iraqi Dinar rv and to gain some insightful knowledge on Buy Iraqi Dinar then visit our website.

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