SBV proposed to cut US dollar deposit rates for institutions down to zero pct

The State Bank of Vietnam-HCM City arm has proposed the Central Bank to cut the deposit rate of US dollar for economic institutions from 1 percent down to 0 percent per annum, aiming to increase supply of US dollar to the market, the local newswire VnExpress reported on April 25.

In the recent time, supply of US dollar to banks has surged by 25 percent sharply following the SBV’s move in trimming US dollar saving rate for individuals at 3 percent per annum, the vice director Nguyen Hoang Minh at the bank arm said, in addition the price of US dollar in the free market was brought down to be equal to banks’ level. Moreover, the situation of dual forex rates at banks ended up.

However, he noted, the volume of US dollar deposits of institutions at banks now remains very plentiful so it is essential to cut down the rate to 0 percent.

After an array of SBV’s interventions, the forex market has shifted to become more positive. US dollar price of commercial banks has continued decreasing to low levels according to the allowable ceiling rates.

This morning (April 25), Asia Commercial Bank or ACB listed the US dollar selling price that was 40 dong lower against the previous day to 20,750 dong while purchasing US dollar at 20,680 dong. At Vietcombank, the gap between US dollar purchasing and selling prices now is expanding to 100 dong.

Meanwhile, the purchase price of US dollar in the free market was 10-20 dong lower than the listed forex rate of 20,670 dong per US dollar. And the selling price fluctuated around 20,770 dong per US dollar.

Presently, gold shops are doing public transactions of US dollar but the price keeps going down as individuals in demand of purchasing US dollar are able to buy a large volume of US dollar from banks.

Typically, Eximbank raised the line of selling US dollar to the individuals who are going abroad. Accordingly, the individuals demanding US dollar for overseas travelling, visiting, business in less than 7 days will be able to buy up to $2,000 from the bank and in more than 7 days, the allowable purchase is $4,000. Others demanding for overseas health treatment in less than 7 days are able to buy $3,000 and $4,000 respectively. – Vietbiz24

Tags: US dollar, Vietnam banking industry, Vietnam finance, Vietnam financial