Vietnam's central bank takes looser monetary measures

Hanoi, August 30 (VNS/VNA) - The State Bank of Vietnam (SBV) has relaxed monetary measures in the context of sharp declines in the foreign exchange rate in recent days.

Specifically, the SBV has stopped offering treasury bills since this week. This was the first time in many months that the SBV has not issued new bills.

The SBV this week also continued to reduce the bill interest rate from 4.2% per year to 4.15% per year. This was the third time this month that the SBV reduced the interest rate on bills. Previously, on August 5, the SBV cut the rate from 4.5% per year to 4.25% per year. The rate was then further reduced to 4.2% on August 20.

The SBV still maintains a liquidity support through open market operation (OMO) channel with more than 5.98 trillion VND at a term of 14 days and an interest rate of 4.25%. Compared to previous trading sessions, the OMO term doubled, while the interest rate remained unchanged.

Previously, the SBV also reduced the OMO interest rate from 4.5% to 4.25% in the session of August 5.