Vietnam Central Bank Pumps VND15 Trillion into Currency Market
The State Bank of Vietnam, the country’s central bank, injected a liquidity of VND15 trillion (US$811.7 million) for local banks via the currency market in a move to ease shortages of funds.
The central bank’s move helped to push down inter-bank rate of week-term loans to 11% per annum from 16%-17%, even from 20% per year at a time and the overnight rate to 8.5%, local banks said.
If the central bank continues to intervene strongly into the open currency market, liquidity pressures of the domestic economy will be eased, which will curb the inter-bank rates to levels of refinancing rate of 9% per year, the banks said.
Earlier Governor Nguyen Van Giau of the State Bank of Vietnam said that the SBV will ensure enough funding and cash for the domestic economy before and after Lunar New Year or Tet holidays that will start from mid-Feb this year.
January 6 is the deadline for seven state-owned corporations to sell immediate 30% of their forex deposits to local banks.
U.S. dollar is trading against the Vietnam dong at VND19,400 on the unofficial market, a gold shop based in Ho Chi Minh City said. (Youth)
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