The deposit interest rate on US dollar for individuals was reduced to 2% per year following Circular No.14/2011/TT-NHNN issued by the State Bank of Vietnam (SBV) on June 1.
Through the Circular, the interest rate offered on individuals’ dollar deposits is capped at 2%, down from the 3% in March; whilst the limit for organisations is cut to 0.5% from 1%.
The new rates are applied to term and non-term deposits, savings deposits, certificates of deposit, bills, bonds and other types of deposits.
Credit institutions are required to quote dollar interest rates at their headquarters, transaction centres, branches, and savings funds in line with the SBV regulations.
Credit institutions are also strictly prohibited from launching promotion programmes whether by cash, interest rates or in other forms in violation of the law and this Circular.
Earlier, the SBV ordered credit institutions to raise their foreign reserve ratio by 1%.
This Circular took effect from June 2, 2011.
(Source: Nhandan)
