Vietnam central bank interest rate

The Hanoitimes - The State Bank of Vietnam aims to keep the inflation rate below 4% this year to ensure the stability of the monetary and foreign exchange markets. In 2021, the State Bank of Vietnam (SBV), the country’s central bank, set a credit growth target of 12%, around the same level of the estimated rate of 11-12% of last year. The State Bank of Vietnam. This is among key targets for 2021 set in the SBV’s directive No.01/CT-NHNN, aiming to stabilize macro-economic conditions and support economic growth. The SBV also expects to keep the inflation rate below 4%, unchanged from last year’s target, to ensure the stability of the monetary and foreign exchange markets. The M2, which  measures money supply that covers cash in circulation and all deposits, could grow by 12% in 2021. The banking sector is tasked with enhancing credit quality with a focus on priority fields, while further addressing difficulties for people and businesses affected by the … [Read more...] about Vietnam Central Bank targets credit growth at 12% in 2021

The Hanoitimes - The interest rate cap for deposits with maturities of one month to less than six months has been lowered to 4% annually from 4.25%. The State Bank of Vietnam (SBV), the country’s central bank, has announced the fourth policy rate cut  this year to support the economy amid Covid-19 impacts, scheduled to take effect from today [October 1]. The State Bank of Vietnam. As per the decision, a 0.5 percentage point reduction would be applied to the refinancing interest rate, discount interest rate, overnight lending rate, and interest via open market operations (OMO). Accordingly, the refinancing interest rate is down from 4.5% per annum to 4%, rediscount rate from 3% to 2.5%, overnight interest rate from 5.5% to 5% and interest rate via OMO from 3% to 2.5%. The SBV also lowered the interest rate cap to 4% annually from 4.25% for deposits with maturities of one month to less than six months. The deposit interest rate cap with maturities of less … [Read more...] about Vietnam c.bank cuts policy rates, the fourth time in 2020

The Hanoitimes - The decrease in short-term deposit rates at commercial banks was mainly driven by the excess liquidity when credit growth was slow at only 5.12% year-on-year as of September 22. The State Bank of Vietnam (SBV)’s latest policy rates cut, its fourth time of the year, is expected to have limited impacts on the economy, according to securities firms. The latest policy rates cut is expected to have limited impacts on the economy. On September 30, the SBV announced it would slash 0.5 percentage points to the refinancing interest rate, discount interest rate, overnight lending rate, and interest via open market operations (OMO). Accordingly, the refinancing interest rate is down from 4.5% per annum to 4%, rediscount rate from 3% to 2.5%, overnight interest rate from 5.5% to 5% and interest rate via OMO from 3% to 2.5%. The SBV also lowered the interest rate cap to 4% annually from 4.25% for deposits with maturities of one month to less than six … [Read more...] about Vietnam c.bank’s latest policy rate cut to have limited impacts on economy

The Hanoitimes - A stable macro-economic environment is essential for Vietnam to ensure economic independence and boost its resilience against external shocks. The State Bank of Vietnam (SBV) will stand firm on the goals of putting the inflation under control and keeping stable macro-economic conditions. SBV’s Governor Nguyen Thi Hong. Photo: Nhat Bac “This is key to enhance the country’s economic independence and resilience during the global integration process with full of uncertainties and volatility at the moment,” stated SBV’s Governor Nguyen Thi Hong in the second day of the 13 th National Party Congress. As the Covid-19 pandemic is causing severe socio-economic consequences across the globe, central banks have opted for support programs of unprecedented scale worth trillions of dollars to help economies overcome the current crisis. “Global economic uncertainties, therefore, are posing risks to the SBV’s efforts in managing monetary policy and … [Read more...] about Vietnam c.bank stands firm on keeping macro-economic stability

The Hanoitimes - New regulations shows that the SBV will reduce one-way intervention in the foreign exchange market. The State Bank of Vietnam (SBV), the country’s central bank, has been working on measures to address the US’s tag of currency manipulation against Vietnam. At the end of 2020, the SBV announced new regulations on buying foreign currencies from commercial banks. To be specific, from December 31, 2020, the SBV stopped listing spot bid-rates on USD/VND and stopped buying USD in the spot market. From January 4, 2021, the SBV extended the USD forward contract term to 6-month instead of 3-month at the USD/VND rate of VND23,125. Besides, commercial banks are only allowed to cancel one-time the entire transaction value of the forward contract. According to the VDSC, this move is considered as a first step to remove the currency manipulation designation by the US Treasury. “By engaging more in forward arrangements, the SBV will be able to manage … [Read more...] about Central Bank steps up efforts to address US tag of currency manipulation