Circular Adjusts Regulations on Forex Interest Rates

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Feb. 20 – The State Bank of Vietnam has issued a circular setting the maximum interest rate applicable to U.S. dollar deposits of economic entities with credit institutions and adjusting the average inter-bank exchange rate.

Circular No. 03/2010/TT-NHNN in particular states:

  • From February 11, 2010, the maximum interest rate applicable to U.S. dollar deposits of economic entities (excluding credit institutions) with credit institutions is 1.0 percent per annum.
  • For interest rates applicable to the existing U.S. dollar time deposits of economic entities with credit institutions before the effective date of this circular, they will continue to be applicable until the due dates of these deposits as already agreed between credit institutions and economic entities.
  • The average interbank rate of Vietnamese dong versus U.S. dollar  is 18,544.

The circular aims to manage foreign exchange supply and demand and improving the circulation of the forex market. Moreover, it is part of government efforts to control trade deficit control and macro-economic stability.