![]() ![]() The Americans now stepped into the power vacuum vacated by France. The political transition from democracy to communism alarmed the United States. In 1953, the State of Vietnam, which was to become South Vietnam a year later, used two currencies: the French piastres and the South Vietnamese dong.Īfter the fall of Saigon on September 22, 1975, the currency of South Vietnam became the “liberation dong.” The exchange rate for 1 liberation dong was worth 500 of the earlier South Vietnamese dong. In 1958, another revaluation occurred at a rate of 1,000 piastres to 1 dong.In 1951, the currency was reevaluated at a rate of 100 piastres to 1 dong.Initially, one piastre was equal to one dong.The Vietnamese currency exchange rate between and the Indochinese piastre and Uncle Ho money were as follows: Later, in 1954, Ho Chi Minh overthrew French hegemony and four years later North Vietnam reunified Vietnam as a communist nation. Uncle Ho Moneyįrom 1945 until 1954, the currency of the Democratic Republic of Vietnam used a portrait of Ho Chi Minh on its banknotes and was affectionately referred to as “Uncle Ho currency.” This new currency, issued in November of 1946, replaced the French currency, the Indochinese piastre. But this was not a smooth transition and took almost two years to complete. Now one dong of the new paper note replaced 10 dong of the earlier banknotes. This central bank replaced the money issued by the Ministry of Finance back in 1947. On May 6, 1951, the new government established the National Bank of Vietnam. It also exchanged at par from Dong Duong banknotes to the Vietnam dong banknote. This established the circulation of banknotes with the face value of 1, 5, 10, 20, 50, 100, and 500 dongs. In 1947, the Vietnamese government issued Decree 48/SL. In 1945, the Democratic Republic of Vietnam issued aluminum coins to replace the hodgepodge of currencies. But French control continued even after the establishment of the Democratic Republic of Vietnam. The Democratic Republic of VietnamĪfter the Second World War, Vietnam got its independence. The Indochina Bank issued banknotes that depicted three girls that wore the traditional costumes of Vietnam, Laos, and Cambodia. Until the French were routed, the piastre was the popular monetary unit but, to add to the monetary muddle, the Mexican coins and Dong Duong coins were also introduced. ![]() French Colonizationįrance controlled the lands of Vietnam, Laos, and Cambodia from the late 1880s until 1954, and this colonial empire was called L’Indochine française, or French Indochina.įrench rule came to an in July 1954 end when General Vo Nguyen Giap, the leader of the Nationalist forces, defeated the allied French armies at Dien Bien Phu, a mountain outpost in northwest Vietnam. ![]() Let us now take a closer look at all these historical events to get a broad picture of how the Vietnamese currency underwent numerous revaluations before it emerged in its current form as a currency that is now traded in the world’s basket of currencies in the foreign exchange market. As a result, the Vietnamese dong underwent an even more drastic change. Vietnam now began to rebuild its economy after many failed attempts. The following four historical events influenced the Vietnamese currency before the war with the United States:Īfter the war with the United States, Vietnam was once again reunified as a communist country. Still, to grasp why the Vietnamese money is so undervalued and why it’s value is expected to increase significantly, it’s important to look at Vietnamese currency before and after the Vietnam war. ![]() At the current rate of Vietnam’s economic boom, Vietnamese money is expected to revalue. Since Vietnam has settled on a successful economic policy that has allowed it to join the global economy, now is the best time to invest in the Vietnamese dong. ![]()
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