Zero interest proposed for corporate dollar deposits

TN News

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In another effort to curb dollar hoarding and increase foreign currency circulation in Vietnam, the central bank may slash interest rates on corporate dollar deposits to zero percent, VnExpress reported Monday.

The news website cited Nguyen Hoang Minh, director of the central bank's branch in Ho Chi Minh City, as saying that coporate dollar savings in banks haven't reduced significantly despite the new rate cap on deposits.

As a result, it's necessary to lower the rates further, Minh said.

The State Bank of Vietnam capped dollar deposit rates at 3 percent for individuals and 1 percent for institutions, effective April 13.

Bankers said many companies and individuals have begun selling foreign currency to banks, causing the dollar to fall sharply against the dong.

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