The State Bank of Vietnam (SBV) issued Decision No.750/QD-NHNN on April 9 to raise compulsory reserves ratio for foreign currencies by 2%.
Accordingly, the foreign currencies reserve ratio’s requirement for the state-owned commercial banks (excluding the Vietnam Bank for Agriculture and Rural Development (AGRIBANK)), joint-stock commercial banks, joint-venture banks, foreign bank branches and wholly-owned foreign banks, for demand deposits and time deposits with term below 12 months is 6% of the total deposit outstanding.
For the AGRIBANK, the Central People’s Credit Fund and cooperative banks, the ratio is 5%.
The reserve ratio’s requirement for the above banks, excluding the AGRIBANK, for time deposits with term over 12 months is 4% of the total deposit outstanding.
Of this kind of deposits, the AGRIBANK, the Central People’s Credit Fund and cooperative banks, are required the ratio of 3%.
The decision will take effect from May 1, 2011.
Meanwhile, in the Circular No. 09/2011/TT-NHNN, the SBV regulated the deposit interest rates of the US dollar at 3% per year for individuals and 1% for organizations (except credit ones).
The circular will take effect on April 13, 2011./.