Viet Nam Announces +/- 1 Percent Dong/Dollar Band

The State Bank of Viet Nam announced on Friday that it would widen the dong/dollar daily trading band to +/-1.0 percent from +/-0.75 percent from March 10 as part of a series of measures to tackle double-digit inflation.

In another effort, the central bank continues providing capital support for commercial banks to ensure their payment ability via banking tools.

Mr. Nguyen Dong Tien, Deputy Governor of the State Bank, said the central bank would soon set a "ceiling" interest rate for open market transactions, in the range of  9-10% per year.

As earlier announced, the State Bank will sell treasury bills worth VND20,300 billion on March 17. However, Mr. Tien said if commercial banks are still facing capital difficulties at that time, the State Bank will re-consider on a case-by-case basis.

By M. Trung – Translated by Tuong Thuy

Other news