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Interest rates on dollar deposits by businesses about 0%

Interest rates US dollar suddenly notified by the State Bank of 0.25% back strong / year for individuals, and organizations to send in foreign currency will be about 0% interest rate.

(Saigon Times Online) - Interest rates US dollar suddenly notified by the State Bank of 0.25% back strong / year for individuals, and organizations to send in foreign currency will be about 0% interest rate.
Decision 1938 regulations on the maximum interest rate for deposits in US dollars mentioned above will take effect today, 28-9.
Specifically, the interest rate applicable to deposits held (excluding credit institutions and branches of foreign banks) was 0% / year. The maximum interest rate applicable to deposits of individuals was 0.25% / year.

Interest rates on foreign currency deposits to the institution of 0%. Photo: TL.

Earlier interest rate US dollar deposits held maximum of 0.25% / year and a maximum interest rate of 0.75% individual / year.
SBV regulations on interest rates on deposits in US dollars with terms of organizations and individuals in credit institutions and branches of foreign banks arising before the date this decision has come into effect, be made until expiry. As was the case the expiry of the agreement, organizations and individuals not to field the deposit, the credit institutions and branches of foreign banks to apply for deposit interest rate stipulated in the decision.
According to SBV, this decision taken to prevent the hoarding of foreign currency in order to contribute to the effective implementation of measures on monetary policy, banking activity in the last months of 2015. The decision It also assessed on the basis of macro-economic developments, the situation of the currency market, forex.
Exchange rate volatility in August, after the yuan of China constantly being dumped, and information from the US may raise interest rates. Along with that, many other currencies devaluation, putting pressure on the dong. SBV sharp correction in the exchange rate in August, with a total lifting range of 2% and raised the interbank exchange rate by 1%. Since then, the central bank has sold foreign currency to the market several times to intervene.
However, the US dollar is also not cool down much, the continuous price closer, then hit the ceiling 22 547 dong / dollar, the average daily oscillation is still around 22,500 dong.
The explanation from the bank is still dynamics of export businesses do not sell foreign currency to banks for still expect rates will continue to rise in coming months, even though the central bank is committed to not changing rates through the year.
Thus, from the date of 28-9, while foreign currency deposits in the banking business will no longer receive 0.25% interest rate as before, but only as post-keeping, without interest, was not fully aware of this clause sent charged as gold posts. But the ability to choose now will not send more US dollars.
So the speculation of foreign currency may fall.
And also now be converted into VND to deposit with an interest rate ceiling of 5.5% for the term of 6 months or less and deal with longer terms, ie interest rate at 6-7 %. This would also reduce the pressure for banks to increase interest rates in dong to strengthen capital input, and create conditions for enterprises to access capital good price, do not worry about being pushed higher interest. The US dollar interest rates the central bank certainly calculate all the support for the stability of interest rates in the context of this interest rate has inched slightly from August to now.

Thanh Thuong

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