Domestic monetary market has started to cool down with interest rates and foreign currency exchange rate seeing remarkable falls, mostly thanks to a series of measures taken by the State Bank of Vietnam (SBV), the Vietnam News Agency reported.
Statistics from the SBV showed that interest rates for VND deposits offered by state-owned commercial banks hovered around 17 per cent-18 per cent/year last week while joint stock commercial lers kept the rates at 18 per cent-18.5 per cent, down 0.5 per cent-1 per cent against late June.
Last week, KienLong Bank introduced the highest ever interest rate in Vietnam at 20 per cent per year. However, after just one day in existence, the SBV forced it to reduce the rate to 19 per cent per year.
In the inter-bank market, the interest rates for VND loans with less-than-one-week periods also decreased. The overnight interest rate is currently stayed at 17.43 per cent per year and the rate for one week loans is at 19.85 per cent per year.
Regarding the foreign exchange rate, the SBV said that domestic forex market has changed positively after the central bank decided to double VND/USD daily trading band to +/-2 per cent.
July 2, the VND/USD exchange rate among commercial banks varied from VND16,840 to VND16,848, 1.35 per cent higher than those offered before the decision was made.
The exchange rate on the free market on the same day was between VND17,400 and VND17,550, a decrease of 2.25 per cent.
Analysts believed that interest rates for both VND deposits and loans will be suitably adjusted soon thanks to the SBVs efforts to improve safety of credit tem.
The SBV affirmed that the public would be timely informed of the bank&rsquos measures to manage the country&rsquos banking tem, especially information related to interest rates, exchange rates and foreign currency management. (VNA)
Vietnamese
