The State Bank of Vietnam has announced that for now, it has no plans to raise the cash reserve ratio.
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| Cash reserve ratio is unchanged |
The State Bank of Vietnam (SBV) made the statement in January 7 to clear up recent rumours that it was considering a 4% hike in the cash reserve ratio for VND deposits with terms of less than one year.
“On January 7, some local and foreign media outlets reported that Vietnam is considering raising the reserve ratio to curb inflation. These reports are inaccurate. At present, SBV has no plans to raise the ratio,” read an official statement from the bank said.
The reports had already been denied by a bank official who said that he’d heard of no such proposal.
At present, credit institutions in Vietnam are required to hold a cash reserve ratio of between 2% and 4% for USD, and between 1% to 3% for VND, depending on the terms.
GDP growth in Vietnam reached 6.78% in 2010, exceeding the National Assembly’s goal of 6.5%, also topping the growth of 2009, which was 5.32%. Vietnam’s total GDP is estimated at $102.2 billion. In December of 2010 the consumer price index (CPI) increased by a record 1.98% from November, bringing the increase for the entire year to 11.75%. Recently, Vo Tri Thanh, Deputy Director of the Central Institute for Economic Management (CIEM) said Vietnam should focus on curbing inflation in 2011 and that if this was not made a priority from the first quarter, the macroeconomic uncertainties in 2011 could be even greater than in 2010. |
