Recent forecasts regarding the exchange rate between the Singapore Dollar (SGD) and the Vietnamese Đồng (VND) indicate a complex interplay of economic and political factors affecting both currencies. As of December 22, the SGD is trading at 20,475 VND, positioned notably just 0.7% above its three-month average of 20,325 VND, within a stable 1.9% range.
For the SGD, the Monetary Authority of Singapore (MAS) has made significant adjustments to its monetary policy over the course of 2025. In January and April, MAS eased its appreciation policy for the SGD nominal effective exchange rate due to lower core inflation and economic growth concerns amid external pressures from U.S. tariffs. Analysts suggest that this cautious stance has come as a response to the external trade environment, with potential additional easing remaining a consideration if economic conditions deteriorate further.
In contrast, the VND is experiencing anticipated depreciation pressures against the U.S. dollar, projected at around 3% for 2025. This trend is a result of the strong U.S. dollar and ongoing global economic trends. Furthermore, recent severe flooding in Northern Vietnam has added to economic instability, potentially exacerbating downward pressure on the VND. Experts note that these natural disasters can disrupt trade and impact economic output, leading to further concerns around the currency's stability.
Moreover, Vietnam's initiative to strictly regulate cryptocurrency transactions in VND may enhance the currency's domestic significance but could also introduce volatility as the market adjusts to new compliance requirements.
Overall, the SGD may benefit from its recent policy adjustments aimed at economic support, while the VND faces challenges both from international pressures and domestic disruptions. Analysts recommend close monitoring of both currencies in light of these developments, as they are likely to shape the exchange rate dynamics in the near term.
