Dollar witnesses a slight hike against the dong
The Vietnamese dong witnessed one of the biggest depreciations against the USD last month. It is done to assist the trading of VND which was identical to the rate of exchange as per previous year’s end.Â
For the past two weeks the rate of exchange of VND is steady as compared to the other currencies. The local currency did a business of about VND 132 per yen and VND 21656 per euro.
The rate of interest for the last week remained steady. And the banks also did not alter the bank rates and persisted with the 3.5 to 3.7 percent annually. The rates did not get altered which shows that the banking structure is functioning smoothly. The banks took out VND 200 billion from the various auctions on a weekly basis and VND 15.7 trillion through the open market functions.Â
From June 1 there will be a hike in various stages of essential bank accounts that the banks had to maintain with the State Bank of Vietnam in overseas exchange. The time period and percentage rates will also be altered. The necessity of the bank accounts to make extensive deposits will also get changed by two times, with the time period of twelve months the deposit percentage will be five to ten percent, and for the time period of twelve to twenty four months the deposit percentage will be two to four percent.
The necessity for the bank accounts and the overseas exchange will be hiked with a time period of twelve months with a deposit percentage of eight to ten and the time period of twelve to thirty-four months with the deposit percentage of two to four.
These alterations are made with a motive to restricting price rises. The API (Annual Price Index) for the month of April increased from 7.18 percent to 7.34 percent. These two annual price index have exceeded the aim to maintain the inflation rate under seven percent yearly.