The State Bank of Vietnam (SBV) has applied a 0% interest rate on foreign currency deposits to address foreign exchange and exchange rate volatility, Governor Nguyen Thi Hong explained during a question-and-answer event at the 15th National Assembly’s 8th session.
The National Bank of Cambodia (NBC) and the country's Ministry of Commerce have recently announced a major step to promote the use of the local currency by encouraging businesses to register new bank accounts in riel.
The State Bank of Vietnam (SBV) should continue to take measures against dollarisation and goldenisation in the domestic economy as the markets remain potential risks for the rising speculation and hoarding of the assets, experts said.
Experts suggested firms use more derivative instruments, such as futures and forward contracts, to minimise exchange rate risks when they can no longer borrow the US dollar from commercial banks, starting early this month.
The restriction on foreign currency lending actually reduces the "virtual" supply and demand of foreign currencies, contributing to reducing dollarisation in the economy
Governor of the State Bank of Vietnam (SBV) Le Minh Hung has recently directed the entire banking industry to strictly control foreign currency lending to better minimise dollar speculation and fight against dollarisation in the economy.
The Government Office last week sent a written document to the central bank governor, referring to the mobilisation of idle gold and foreign currency sources from the people.
Export enterprises and commercial banks welcomed the State Bank of Vietnam (SBV)’s decision to allow credit institutions to resume provision of foreign currency loans two months after it was banned.
Vietnamese deposits overseas, which were previously negligible, skyrocketed to hit 7.3 billion USD as of the third quarter of 2015, it was reported at a conference in Hanoi on April 12.
The maximum interest rate paid to individuals depositing USD in local banks will be zero percent per year from December 18, the central bank announced.
The State Bank of Vietnam (SBV)’s surprising decision to cut the interest rates on USD deposits on September 27 was welcomed by economic experts, who said the move was a step towards many goals.
