State Bank of Vietnam Plans to Withdraw VND90Tln in First Quarter

The State Bank of Vietnam is expected to withdraw about VND90 trillion (US$5.6 billion) in the first quarter this year as part of its four measures to curb growing inflation.

 

The measures adopted by the bank are raising the compulsory fund reserves of local banks by 1 per cent, tightening lending to stock trading, increasing the discount and rediscount rates, a bank official who declined to be named was cited by the local newspaper Vietnam Economic Times as saying.

 

With the SBV's decision to raise banks' compulsory reserves, about VND70 trillion will be reduced from the economy, the official noted.

 

Local banks and credit institutions will have to buy mandatory treasury bills valued at VND20.3 trillion and keep for one year, the official added.

 

The consumer prices in January soared 14.11 per cent on year, the highest-ever so far and prices of land and houses have kept rocketing by more than 50 per cent, state media said.

 

According to the General Statistics Department, Vietnam invested a total of VND461.9 trillion in the economy last year, accounting for 40.4 per cent of its GDP. (Securities Investment)