Vietnamese Currency: Get to Know What is Dong, History and Differences with Rupiah

Vietnam is a country that is given the nickname Southeast Asia's socialist country, another nickname is also given to this country by the name of the land of the blue dragon. The nickname of the country of the blue dragon was obtained because Vietnam became one of the countries that followed in the footsteps of the dragons, such as Hong Kong, Korea and so on.

To get to know Vietnam in more depth, here is an explanation of the currency used in Vietnam along with its history and differences from the rupiah currency. Here's the full article!

What is Dong Currency?

Dong is the designation of Vietnam's currency which is officially recognized and has the international code VND. In Vietnamese, the word dong means money, so in the sense that if we add a country's name after saying dong, it will refer to another country's currency.

Vietnam's currency is referred to as the Vietnamese dong, this is to clarify or as a reference that the money in question is Vietnamese money. Vietnamese dong or in its international code VND, is the Vietnamese currency which was present in 1978 after replacing the previous currency, namely the hao.

The Vietnamese dong or VND is considered the smallest unit of Vietnamese currency that has been issued by the State Bank of Vietnam. The current position of Vietnam's currency is one of the currencies with the lowest value in the world, this is due to inflation that hit the country.

History of Vietnamese Currency

Vietnam's currency, namely the Vietnam Dong, began in 1945 when the Vietnamese state gained independence from French colonialism. This is what indicates a change in Vietnamese currency, both from materials to designs that are spread in society.

In 1945, Vietnam's currency has cash with two sides of different pictures where the first side is Ho's uncle and the name of the Democratic Republic of Vietnam, the second side is a picture of agricultural, industrial and military symbols.

At that time, this type of currency was often referred to as uncle's money. Over time, in 1951, the Vietnamese Dong was finally evaluated and redesigned by the State Bank of Vietnam. Vietnamese dong has a number of denominations such as 100,200, 1.000 and 2.000 without circulation of coins.

Switching in 1954-1975 when the Vietnam War occurred there was a issuance of notes issued by the northern side of Vietnam and the southern side of Vietnam unilaterally, although in the end in 1975 after the reunification of the Vietnamese currency it was re-united under the name "Liberation Cash". This is also the cause of the emergence of the Vietnamese dong as a re-modification of the use of Vietnamese currency.

The difference between the Dong currency and the Rupiah

Vietnam's currency is currently one of the currencies with the lowest exchange rate in the world. This is a result of prolonged inflation in the country of Vietnam, other things are also due to policies in the use of currency as an exchange rate. Prior to 2003, serial values ​​on Vietnamese currency were considered to be quite confusing to the public and there was still a lack of coordination over the designs and themes that were combined.

Inflation that occurred in Vietnam caused the government to issue a new policy, in which in 2003 Vietnam replaced cotton banknotes with plastic polymer banknotes. This was intended as an effort by the government to reduce printing costs, although not a few people also demanded reform because they thought that this would only benefit the son of the governor of Vietnam's state bank.

In 2007, the Vietnamese government also declared to stop producing cotton notes with a value of 50.000 VND and 100.000 VND. The money series distributed to the public using plastic polymer banknotes also have the same denomination.

When compared to the Indonesian rupiah, VND internationally has a lower exchange rate than the rupiah. Currently, the exchange rate of 1 dollar to rupiah is equivalent to 15.000 rupiah, while the exchange rate of 1 dollar to VND is equivalent to 23.000 Vietnamese dong. This also indicates that if the rupiah is exchanged for Vietnamese dong, then 10.000 rupiah will get 15.000 Vietnamese dong.

This is an explanation of the meaning of the Vietnamese dong as the Vietnamese currency along with the history and differences between the dong currency and the rupiah exchange rate. Hopefully the information that has been submitted before can be useful!