Abstract

http://ssrn.com/abstract=1460604
 


 



A Market Microstructure Approach to the Foreign Exchange Market in Vietnam


Phuc Tran Nguyen


Griffith University

Tom Nguyen


Griffith University

August 24, 2009

22nd Australasian Finance and Banking Conference 2009

Abstract:     
Vietnam’s foreign exchange (forex) market has remained relatively poorly developed despite more than two decades of general economic reform. This paper adopts a market microstructure approach to the investigation of possible reasons underlying this situation. The analysis suggests that the authorities have tended to place special emphasis on maintaining stability in the nominal VND/USD exchange rate, and have relied on a number of administrative measures to support such stability. In turn, stability/stickiness of the VND/USD rate has acted as a retardant in the development of the country’s forex market. In particular, the role of commercial exchange rate quotes as accurate price signals has been materially reduced.

Number of Pages in PDF File: 39

Keywords: Foreign exchange market, market microstructure, Vietnam, VND/USD exchange rate

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Date posted: August 24, 2009 ; Last revised: June 7, 2010

Suggested Citation

Nguyen, Phuc Tran and Nguyen, Tom, A Market Microstructure Approach to the Foreign Exchange Market in Vietnam (August 24, 2009). 22nd Australasian Finance and Banking Conference 2009. Available at SSRN: http://ssrn.com/abstract=1460604 or http://dx.doi.org/10.2139/ssrn.1460604

Contact Information

Phuc Tran Nguyen (Contact Author)
Griffith University ( email )
Brisbane, Queensland 4111
Australia
Duc-Tho Nguyen
Griffith University ( email )
Brisbane, Queensland 4111
Australia
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