Vietnam Central Bank to Inject VND10 Tln into Market to Ease Cash Shortage
The State Bank of Vietnam is expected to pump about VND10 trillion (US$625 million) into the local market Thursday [February 21] in a bid to cool down the escalating inter-bank interest rates state media reported.
With the fund, the central bank will have supplied the economy with VND30 trillion in cash by the end of this week after local banks have raced to raise deposit rates recently, the Thoi Bao Kinh Te Sai Gon newspaper said.
The bank Wednesday sold VND15 trillion of 14-day bills to the Bank for Agriculture and Rural Development of Vietnam at an annual interest rate of 15 per cent, it said.
“The cash pumped by the central bank immediately lowered inter-bank rates to 20 per cent-25 per cent February 20 from 30 per cent-35 per cent a day earlier, and the rates will be lower in the near future” a person familiar with the central bank noted.
The bank has used roughly half of its local currency cash funds for this year, the newspaper added. (Saigon Economics Times)
Vietnamese
