Saturday, December 14, 2024 10:52:12 PM - Markets closed
VN-INDEX 1,262.57 -4.78/-0.38%
HNX-INDEX 227.00 -0.99/-0.43%
UPCOM-INDEX 92.54 -0.14/-0.15%
SBV sticks to 0% rate to fight off dollarisation
vietnamnews - 8/19/2024 11:18:15 AM
 (0 ratings. You must sign in to rate.)
Measures implemented by the State Bank of Vietnam (SBV) to fight off the dollarisation of the economy, highlighted by the 0% interest rate for deposits made in US dollars, have produced positive effects in stabilising the exchange market, increasing foreign reserves, remittance flows and foreign investments, said economists.
 
 
Outside of the State Bank of Vietnam (SBV) headquarters in Hanoi. — VNA/VNS Photo
 
 Measures implemented by the State Bank of Vietnam (SBV) to fight off the dollarisation of the economy, highlighted by the zero per cent interest rate for deposits made in US dollar, have produced positive effects in stabilising the exchange market, increasing foreign reserves, remittance flows and foreign investments, said economists and exchange market experts.
 
The zero per cent interest rate policy, among others, has contributed significantly to the central bank’s effort to halt the rate of the dollarisation of the economy, effectively reducing half the country’s foreign currency deposit over the last decade.
 
Efforts to combat the dollarisation have been among the government’s top priorities in recent years as Việt Nam adapted its policies to control inflation and stabilise the macro economy while making progress in enhancing the VNĐ’s position. It has played no small part in the country’s success in bringing inflation down from double-digits to single digits and keeping it at a low level.
 
The central bank has remained vigilant in its watch over the exchange market and interest rates as many of its policies send a clear signal to the market that holding onto the VNĐ is, in more ways than one, more beneficial than the greenbacks. A gradual ceiling decline in interest rates for deposits made in US dollar brought the interest rates to zero per cent at the end of 2015. It has, since then, stayed at zero per cent.
 
SBV’s deputy governor Phạm Thanh Hà said the interest rate has been among the most effective policies implemented by the central bank to slow down the rate of dollarisation.
 
He said it has been one of the government’s top priorities and long-term objectives for the economy. The implementation of the policy is held to the highest of standards to ensure its success, as a key element in Việt Nam’s de-dollarisation strategy.
 
Economist Lê Xuân Nghĩa said the SBV will likely stay committed to the zero rate to maintain the positive impacts it has on the macroeconomy. He also advised the central bank to keep a watchful eye on the exchange market to ensure the policy’s effectiveness.
 
Dr Trần Thọ Đạt said the exchange market, for the most part, has seen a period of stability. He said in principle, regulators should only intervene if there are issues with the market and for the time being, the nought per cent rate policy should be maintained. — VNS
 
Read original article here
Newer News
13/12 VN to regulate digital assets with digital law
13/12 Banks face difficulties in balancing capital raising and lending
10/12 Dialogue on tax and customs policies to ease business operations
10/12 Bank capital contribution needs investigation to prevent cross-ownership
09/12 More tax law reforms needed to address e-commerce challenges
05/12 PM direction to promote credit management solutions
02/12 2-per-cent VAT reduction extended to the end of June
02/12 E-commerce platforms to declare, pay taxes on behalf of sellers from April 1, 2025
29/11 State bank increases credit growth limit for banks for second time this year
28/11 PM asks central bank to accelerate lending to businesses
Older News
17/08 Imposing 5% VAT on fertilisers will bring difficulty to farmers
16/08 Total assets of VN credit institutions rise by 4.97%
14/08 Banks under pressure to increase cheap capital sources
13/08 Special consumption tax on alcoholic beverages could double by 2030: MoF
12/08 Bad debts kept rising in first five months of 2024
12/08 Strong measures needed to avoid bad debt rise
08/08 MoF proposes lower tax rate for micro and small enterprises
02/08 Many banks gain big profits from foreign exchange trading
01/08 Global gold demand hits record highs, supporting rising prices in Q2
31/07 City forms task force to enhance monitoring of gold bar transactions
 
Newsletter Signup
Top Stories
VCCI recommends mineral mining rights be granted through auction and bidding
Central bank works to raise interbank rates and ease forex market
Inflation a concern following salary increases
National Council for Sustainable Development established
Việt Nam, Cambodia look forward to $20 billion trade
Market Update
Last updated at 3:05:01 PM
VN-INDEX 1,262.57 -4.78/-0.38%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.