(VOVworld) - The supply and demand for foreign currencies in September remain stable and the central bank will maintain the current inter-bank exchange rate. According to Nguyen Thi Hong, Deputy Governor of the State Bank of Vietnam (SBV), the surplus in the balance of payments over the past 9 months totaled 11 billion USD. The demand for foreign currencies at credit institutions was not high. The Bank reported positive liquidity on stock markets, reaching up to 1 billion USD a day. Commercial banks can satisfy demands for foreign currency from organizations and individuals. … [Read more...] about Vietnam upholds inter-bank exchange rate
Central bank exchange rates
Central bank says rate cuts on dollar deposits will not hurt liquidity
Interest rates on US dollar deposits were reduced to 0-0.25 percent a year on September 28. Photo: Ngoc Thang The State Bank of Vietnam has said the recent cuts in the interest rates of US dollar deposits were carefully planned and will not affect the banking system's liquidity. In an effort to increase the dong's attractiveness, the central bank on Monday reduced ceiling interest rates on US dollar deposits to 0.25 percent a year for personal customers and 0 percent for corporate ones. Deputy governor Nguyen Thi Hong said with inflation moderating, depositors can benefit from a high real interest rate in the Vietnam dong. Prior to the cuts, interest rates on personal deposits in the US dollar was 0.75 percent and corporate deposits was 0.25 percent. Interest rates on Vietnam dong deposits are now set at 4.19-5.2 percent a year, according to the state bank's website. The dong has dropped by around 5 percent against the US dollar this year. The greenback sold at VND22,430-22,510 … [Read more...] about Central bank says rate cuts on dollar deposits will not hurt liquidity
Inter-bank exchange rate slightly up
Inter-bank exchange rate slightly up By Thanh Thuong - The Saigon Times Daily HCMC – The State Bank of Vietnam on Wednesday revised up the inter-bank foreign exchange rate by another VND10 to VND20,813 to the dollar, prompting commercial banks to quickly raise the trading rate to the cap of VND21,021. The adjustment of the inter-bank rate, which has stayed put for over one month, pushed the greenback up by 0.9% against the local currency compared to early September when the central bank’s governor pledged to keep the rate not to exceed by more than 1% in the rest of the year. Given the permitted trading band of 1% either side of the formal inter-bank rate, several commercial banks have immediately pushed up their quoted rates. Bank for Investment and Development of Vietnam (BIDV) and the Vietnam Export Import Commercial Joint-Stock Bank (Eximbank) raised the spot rate to VND21,021, while Bank for Foreign Trade of Vietnam (Vietcombank) alone bought the U.S. dollar at … [Read more...] about Inter-bank exchange rate slightly up
Central bank prepares rate cut
Central bank prepares rate cut By Hai Ly - The Saigon Times Daily HCMC - The State Bank of Vietnam is working on synchronous measures in an earnest effort to reduce interest rates so as to ease difficulties for business, said the central bank’s governor. “Departments and divisions of the State Bank of Vietnam are working laboriously to compile new legal documents or revise prevailing ones before launching new measures to cut interest rates, stabilize the foreign exchange rate, and control the gold market,” said Governor Nguyen Van Binh. He revealed that the central bank would complete the legal corridor for synchronous measures, and “next week the central bank would meet with 12 major banks to discuss the measures. Banks are those entities that implement such rules, so we want to listen to them,” Binh said. Legal documents being reviewed are those relating to capital mobilization on the interbank market so as to regulate the capital flow between the … [Read more...] about Central bank prepares rate cut
Central bank raises rates
The State Bank of Vietnam has hiked several key interest rates but narrowed the daily foreign exchange trading band. With effect from December 1, the prime rate and recapitalization interest rate will go up to 8 percent from 7 percent and the discount interest rate to 6 percent from 5 percent. The forex band has been reduced to ±3 percent from ±5 percent with effect from November 26. These measures are meant to cope with the volatility in gold prices and rise in the dollar rate, SBV governor Nguyen Van Giau explained. Following the changes, the greenback fell by 3.44 percent to stand around VND18,500, he said. But this does not mean the central bank wants to weaken the dong and it is only a measure to strengthen control over credit growth and enable commercial banks to raise capital, he said. Other measures under consideration include a hike in import tariffs on some items, limiting import of some non-essential goods to contain the trade deficit, and … [Read more...] about Central bank raises rates