Please answer the following question below:

Suppose that we observe the following situations between Vietnam and the US. How do these events affect exchange rates between USD and VND on the foreign exchange market (FX))? The central bank of Vietnam (SBV) would like to maintain the previous rate. What actions they will do?

1) Inflation rate in Vietnam is forecasted to be higher than that of the US

2) Vietnamese government is planning to increase the interest rate

3) Vietnamese is expected to get a higher income than the Americans

4) Vietnam has been more and more attractive to foreign customers. The number of foreign customers choosing Vietnam for holidays is forecasted to increase

5) Economic growth rates of the U.S is expected to be greater than in Vietnam

6) The US government imposes higher tax applied on goods imported from Vietnam

7) Vietnamese government imposes a quota on goods imported from the US

You need to do step by steps:

a) How this event/factor above affect the demand and supply of USD in Vietnam? Demand only, supply only, or both?

b) The demand curve/supply curve of USD in Vietnam will be shifted to the left or the right?

c) Draw a diagram to identify the new equilibrium exchange rate -> which currency is appreciated, and which one is depreciated?

d) Central bank's intervention?