Vietnam’s central bank will increase banks’ FX reserve ratios next month, Reuters reports. As of June, the State Bank of Vietnam had fixed the dollar deposit rate at 2%. The reserve-requirement ratio on non-term foreign exchange deposits and those with terms of up to 12 months will be increased to 8% from 7%.
The bank raised the rate for foreign currency deposits with terms longer than 12 months to 6% from 5%. The bank will keep the 14% ceiling rate on dong deposits until year-end to help lenders reduce lending rates. The move will let banks cut their lending rates to a targeted 17% to 19% range, as of mid-September.
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