Vietnam money: dong rates continue firm after tightening (18/6)
06/08/2010 - 118 Lượt xem
Six-month lending rates from four state-run banks, Vietnam's top lenders, edged up to 8.7-8.9 percent Monday from 8.6 percent last Monday and 7.5-8.0 percent on June 4.
State-owned bank dealers said rates on overnight dong loans firmed to 7.2-7.6 percent from 6.5-7.0 percent last Monday and 4.0-4.5 percent in the first week of the month.
The central bank tightened monetary policy by raising banks' compulsory reserves from June 1, aiming to rein in inflation.
Demand for funds is expected to increase as the year progresses. The economy grew 7.9 percent in the first five months, below the 8.5 percent growth target for 2007, which has prompted the government to call on ministries and other bodies to push for 9 percent expansion in the second half of the year.
Planning and Investment Minister Vo Hong Phuc said last week that action should be taken to accelerate growth in the industrial and service sectors to help offset a slowdown in agricultural production.
Funding demand will continue strong in 2008, when Vietnam is looking for growth of up to 8.7 percent, according to a government order last week.
Partly private banks seem to have ample funds
Vietnam's sixth-largest lender, Sacombank, said January to May deposits soared 99 percent from a year earlier to VND35.6 trillion (US$2.2 billion) and loans in the same period reached VND19.3 trillion ($1.2 billion), or 83 percent higher than in the same period last year.
The central bank set the official exchange rate at VND16,124 per dollar on Monday, down 0.14 percent from the end of 2006.
The dong's value has fallen back in the past three weeks, since it climbed to 16,101 dong per dollar on May 24 after hitting the year's low of 16,150 on Jan. 20.
(Reuters)
Source: Thanh nien
