Vietnam Central Bank Announces to Further Cut Benchmark Rates to 12 per cent

The State Bank of Vietnam, the country's central bank, said on its Web site on Monday that it will further slash the benmark rate to 12 per cent from current 13 per cent effective from Nov 5 this year in an effort to boost add more liquidity to the economy.

 

SBV also decided to lower the compulsory reserves of banks to 10 per cent from current 11 per cent, current deposit accounts of dong of 12 months to 4 per cent from current 5 per cent, compulsory dong reserves of Agribank to 7 per cent from current 8 per cent, compulsory dong reserves of commcercial joint stock banks and people's credit funds to 3 per cent from current 4 per cent.

 

The central bank will also axe foreign currency reservers of commercial banks including Vietcombank, joint venture banks and branches of foreign banks in Vietnam to 9 per cent from 11 per cent. (SBV)