The SBV suddenly reduces interest rates of required reserves

SBV decided to reduces a number of operating interest rates

Accordingly, the interest rate for required reserves deposits in VND is 0.5% per year and the excess reserves deposits in VND is 0% per year, down 0.5% compared to the previous interest rate issued by the SBV under a decision signed on March 16.

Meanwhile, the deposit interest rate in VND of the Vietnam Development Bank, the Vietnam Bank for Social Policies, the People's Credit Fund and the Microfinance Institution at the SBV also dropped to 0.8% annually, down by 0.2% compared to the interest rate adjusted by the State Bank on March 16.

Besides, the deposit interest rates of the State Treasury, Vietnam Deposit Insurance at the State Bank decreased to 0.8%per year, equivalent to a decrease of 0.2%.

The State Bank's decisions take effect from 1 August 2020.

According to the State Bank, the adjustment decisions were issued to suit macroeconomic developments as well as the interest rate level in the market.

This is the second time in 2020 the State Bank of Vietnam made adjustment on the reduction of the interest rates as mentioned above. The previous adjustment was March 16.