New regulation on foreign currency reserve requirement interest rate

The Governor of the State Bank of Vietnam (SBV) issued Decision No.3281/QĐ-NHNN on December 31, 2008 on the interest rate applicable to excessive amount of reserve requirement in foreign currencies of credit institutions and the State Treasury’s foreign currency deposits with the SBV.

Accordingly, the SBV has decided to pay credit institutions an interest rate of 0.5% p.a on the excessive amount of reserve requirement in foreign currencies, and an interest rate of 0.5% p.a to the State Treasury’s foreign currency deposits with the SBV.

The decision takes effect on Jaunuary 1, 2009.

This new interest rates will replace the rates stipulated in Article 3 of Decision No. 923/QD-NHNN dated July 20, 2004 on the interest rates applicable to the reserve requirement deposits of credit institutions, and the regulation in Decision No. 667/QD-NHNN dated June 26, 2003 on the interest rate of US dollar demand deposits of credit institutions and the State Treasury with the SBV.

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