Assume that the exchange rate between the Vietnamese dong and the US dollar is fully floating. In keeping all other factors constant, use each of the events given below (events independent events) to graph the supply and demand of foreign currencies and explain changes in exchange rates between Vietnam Dong and US Dollar. From there, analyze the impact of this exchange rate change on import and export, aggregate demand, output and prices of the Vietnamese economy in the short term. Illustrate this effect through the graph of aggregate supply - aggregate demand (AS-AD).
a. Foreign capital inflows into Vietnam increased sharply: In January 2018 alone, the
Foreign investors (foreign investors) net bought about 8,500 billion dong on the stock market securities (stock market), equivalent to about 374 million USD. Meanwhile, according to the data of General Statistics Office, foreign direct investment (FDI) capital in January-January 2018 (as of January 20, 2018) reached about 1 billion USD. In addition, foreign investors also spent about 397 million USD for three IPOs of Refinery and Petrochemical Company Binh Son, PVOil and PVPower took place in January 2018,...
b. Total import-export turnover in 2008 reached 143.4 billion USD, in which export reached 62.69 billion USD and import was 80.71 billion USD. End of December In 2008, Vietnam's trade deficit was 18.03 billion USD, reaching an all-time record, increasing 27.7% compared to 14.12 billion USD in 2007.