In the context of the escalating international inflation trend and the sharp fluctuation on the US Dollar's exchange rate in recent years, the State Bank of Vietnam has synchronously coordinated monetary policy tools and solutions such as increasing interest rates and easing the fluctuation range of USD/VND spot rate to control inflation and economy. Specifically:
Increase the fluctuation range of USD/VND spot rate compared to the central rate from ±3% to ±5% from 17/10/2022
Spot rates are the rates listed at commercial banks for immediate payment for transactions in interest, commodities, securities, or currencies. The spot rate is determined on the basis of the central rate set by the State Bank and changes continuously throughout the day within the specified fluctuation range.
Previously, the fluctuation range of USD/VND spot rate was regulated as ±3%. Recently, the State Bank of Vietnam issued Decision 1747/QD-NHNN on increasing such range from ±3% to ±5% to create flexibility for commercial banks and import-export enterprises in the fast-paced market.
Simultaneously increase interest rates applicable from 25/10/2022
No. |
Types of interest rate |
Previous regulation |
New regulation |
Changes |
|
1 |
Demand deposit and time deposit with a term of under 1 month |
≤ 0.5%/year |
≤ 1.0%/year |
Increase by 0.5%/year |
|
2 |
Time deposit with a term ranging from 1 month to under 6 months |
≤ 5.0%/year; Particularly for People's credit funds and Microfinance institutions: ≤ 5.5% per year. |
≤ 6.0%/year; Particularly for People's credit funds and Microfinance institutions: ≤ 6.5% per year. |
Increase by 1%/year |
|
3 |
Refinance |
5.0%/year |
6.0%/year |
Increase by 1%/year |
|
4 |
Rediscount |
3.5%/year |
4.5%/year |
Increase by 1%/year |
|
5 |
Overnight rate for inter-bank electronic payments and interest rate for loans covering capital shortfall regarding clearing of the State Bank for credit institutions and foreign bank branches |
6.0%/year |
7.0%/year |
Increase by 1%/year |
|
6 |
Short-term loan interest rate in Vietnam dong of credit institutions and foreign bank branches for borrowers to satisfy the capital requirements for certain economic fields and sectors according to Circular No. 39/2016/TT-NHNN dated December 30, 2016[1] |
- ≤ 4.5%/year for credit institutions, foreign bank branches (except for People's Credit Funds and Microfinance Institutions). - ≤ 5.5%/year for People's Credit Funds and Microfinance Institutions. |
- ≤ 5.5%/year for credit institutions, foreign bank branches (except for People's Credit Funds and Microfinance Institutions). - ≤ 6.5%/year for People's Credit Funds and Microfinance Institutions. |
Increase by 1%/year |
[1] Clause 2 Article 13 of Circular 39/2016/TT-NHNN stipulates on cases where customers are entitled to the maximum interest rate not exceeding the level decided by the Governor of the SBV (including customers practicing in the field of agriculture and rural development; export; small and medium-sized enterprises; supporting industries and high-tech application enterprises).
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