Vietnam Cuts Interest Rate of Foreign Currency Reserve Excess

The Governor of the State Bank of Vietnam (SBV), the country’s central bank, has decided to reduce interest rate applicable to excessive amount of mandatory reserves in foreign currencies of credit institutions and the State Treasury’s foreign currency deposits with the SBV.

 

Under the decision issued on April 3, the SBV will pay credit institutions an interest rate of 0.1 per cent per annum on the excessive amount of reserve requirement in foreign currencies and 0.1 per cent per annum to the State Treasury’s foreign currency deposits with the SBV.

 

The new rates are down from 0.5 per cent per annum stipulated at the Decision No. 3281/QD-NHNN dated December 31, 2008.

 

The SBV, the country’s central bank, has recently said that Vietnam has a total foreign currency reserve of nearly US$40 billion.

 

The decision took effect from April 3, the SBV said. (SBV)