SBV to Raise Foreign Currency Reserves

The State Bank of Vietnam (SBV) has issued Decision No.750/QD-NHNN to raise compulsory reserves ratio for foreign currencies by 2 percent. The decision will take effect from May 1, 2011

 

Accordingly, the foreign currencies reserve ratio’s requirement for the state-owned commercial banks (excluding the Vietnam Bank for Agriculture and Rural Development (AGRIBANK), joint-stock commercial banks, joint-venture banks, foreign bank branches and wholly-owned foreign banks, for demand deposits and time deposits with term below 12 months is 6 percent of the total deposit outstanding.

 

For the AGRIBANK, the Central People’s Credit Fund and cooperative banks, the ratio is 5 percent.

 

The reserve ratio’s requirement for the above banks, excluding the AGRIBANK, for time deposits with term over 12 months is 4 percent of the total deposit outstanding.

Of this kind of deposits, the AGRIBANK, the Central People’s Credit Fund and cooperative banks, are required the ratio of 3 percent.

 

VGP