Vietnam central bank lowers mandatory forex ratios
The mandatory reserve ratio, the amount of money that banks need to set aside to cover deposits, was lowered to 4 percent for deposits of less than one year, from the current 7 percent, and to 2 percent for deposits of more than one year, from 3 percent at the moment.
The new ratios will be effective from February, the statement said.
“The reduction in compulsory reserve ratios will allow banks to give more loans in US dollars,” said Nguyen Bich Thuy, deputy chief executive officer at Hanoi Building Commercial Joint-Stock Bank.
The new ratio doesn’t apply to Bank for Agriculture & Rural Development, Vietnam’s biggest bank by assets. The central bank lowered its compulsory ratio to 3 percent for deposits of less than one year and to 1 percent for deposits of more than one year, according to the statement.
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