How exchange rates work
An exchange rate is the price of one currency expressed in terms of another. When 1 USD = 25,450 VND, it means you receive 25,450 Vietnamese Dong for every US Dollar you exchange.
Exchange rates fluctuate constantly based on:
- Interest rates: Higher rates attract foreign investment, strengthening currency
- Inflation: Higher inflation generally weakens a currency
- Economic performance: Strong GDP growth tends to strengthen currency
- Political stability: Uncertainty weakens currency
- Market speculation: Traders betting on currency movements
Types of exchange rates
Spot rate
The current market rate for immediate exchange. This is what financial apps and converters show.
Bank rate vs market rate
The rate your bank charges includes a markup (spread) of 1–3% above the market rate. This is how banks profit from currency exchange.
Mid-market rate
The midpoint between buy and sell rates. This is the "true" exchange rate shown by services like Google, XE.com, and Privatool's converter.
Major world currencies
| Currency | Code | Symbol | Region |
|---|---|---|---|
| US Dollar | USD | $ | United States |
| Euro | EUR | € | European Union |
| British Pound | GBP | £ | United Kingdom |
| Japanese Yen | JPY | ¥ | Japan |
| Chinese Yuan | CNY | ¥ | China |
| Vietnamese Dong | VND | ₫ | Vietnam |
| Singapore Dollar | SGD | S$ | Singapore |
| Australian Dollar | AUD | A$ | Australia |
| Canadian Dollar | CAD | C$ | Canada |
| Swiss Franc | CHF | Fr | Switzerland |
USD to VND exchange rate history
The USD/VND rate has changed significantly over the decades:
- 2000: ~14,500 VND per USD
- 2010: ~19,500 VND per USD
- 2020: ~23,200 VND per USD
- 2025: ~25,400 VND per USD
The Vietnamese Dong has gradually weakened against the dollar over time, reflecting Vietnam's higher inflation rate relative to the US.
Tips for getting better exchange rates
- Use a debit card abroad: Many banks offer near-market rates with small fees
- Avoid airport exchange: Rates are typically 5–10% worse
- Avoid dynamic currency conversion: Always pay in local currency when traveling
- Check fees: A "no fee" exchange may hide the cost in the rate itself
- Transfer services: Wise (TransferWise), Revolut often offer better rates than banks
How to convert currencies free
- Go to Currency Converter
- Enter amount and select currencies
- View daily updated exchange rates
- Compare multiple currencies simultaneously
Note: Rates are updated daily. For real-time rates for financial transactions, consult your bank or a licensed forex broker.