Compulsory Reserve Ratios for Foreign Currency Up 1%

The State Bank of Vietnam has decided to raise compulsory reserve ratios of foreign currency for credit institutions by 1%, pursuant to Decision No.1925/QĐ-NHNN.

 

The Decision will take effect on September 2011 and replace Decision No.1209/QĐ-NHNN issued on June 1, 2011.

 

Accordingly, compulsory reserve ratios for non-term foreign currency deposits and those with terms of less than 12 months at State-owned banks (except for Agribank), joint stock commercial banks, 100% foreign-invested banks, joint venture banks and branches of foreign banks in Vietnam will be increased from 7% to 8%.

 

The ratio for the same deposits at Agribank, Central People’s Credit Funds and co-operative banks will be 7% of the total compulsory reserves.

 

Compulsory reserve ratios on deposits with terms of longer than 12 months will be 6% for the first above-mentioned group, plus finance companies and finance leasing companies and 5% for the second group of credit organisations.