The State Bank of Vietnam (SBV) has issued a Decision 1349/QD-NHNN on interest rates applicable to reserve requirement deposits and excess reserves of credit institutions and foreign banks’ branches in the SBV.

At Vietcombank's headquarters in Hanoi. (Photo: VNA)

The State Bank of Vietnam (SBV) has issued a Decision 1349/QD-NHNN on interest rates applicable to reserve requirement deposits and excess reserves of credit institutions and foreign banks’ branches in the SBV.

It will take effect on September 1 to replace the central bank’s Decision 1349/QD-NHNN dated August 6, 2020.

Under the new decision, the interest rates of reserve requirement deposits in Vietnam Dong and in foreign currencies will be kept unchanged at 0.5 percent and zero percent per annum, respectively.

The interest rate for excess reserves in Vietnam Dong will also remain at zero percent per annum, while that in foreign currencies will be slashed to zero percent per annum, from 0.05 percent per annum as prescribed in the previous decision./.