Dinar Daily
Welcome to Dinar Daily Discussions.

Logging in with your USERNAME allows you to participate in discussions, see what has recently been posted, and other options. Guests can post but they do have limited abilities.

We are NOT a guru forum. We are a dinarian forum. The opinions expressed on the forum do not reflect the of opinion of Dinar Daily specifically, but rather reflect the views of the individual posters only.


We are in compliance with, "Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use."

Join Us for Dinar Discussions and More -- We Keep it REAL
HomeSearchMemberlistFAQLog inRegister
Help Us Drain the SWAMP in DINARLAND

REPORT TONY RENFROW for violating his Court Order to stay away from Dinar -

Judge's email: ksd_murguia_chambers@ksd.uscourts.gov
PHONE - 913-735-2340

DA's email: Scott.Rask@usdoj.gov
PHONE - 913-551-6730

Key Words
Adam Montana, AdminBill, Benjamin Fulford, Currency Exchange, David Schmidt, Dinar, Dinar Guru, Dinar Recaps, Dinar Rv, Dinar Scam, Dr Clarke, Frank26, Gary Larrabee, Gurus, Guru Hunters, JerzyBabkowski, Kaperoni, Kenny, Monetary Reform, Mnt Goat, My Ladies, Okie, Poppy, RamblerNash, Ray Renfrow, Redenomination, Revaluation, Ssmith, TNTBS, Tnt Tony, WING IT, We Are The People, Willis Clark, WSOMN, Yosef, Zap
Post new topic   Reply to topic
Share | 

 Vietnam to lift key interest rate

Go down 
Elite Member
Elite Member

Posts : 1812
Join date : 2011-06-24

PostSubject: Vietnam to lift key interest rate   Fri Oct 07, 2011 12:16 pm

October 7, 2011

Vietnam to lift key interest rate

Vietnam will raise a key policy interest rate for the fifth time this year, the central bank announced, as it tries to contain Asia's highest inflation rate and renewed pressure on its dong currency.

The refinancing rate, one of several monetary policy tools used by the communist state to steer its economy, will increase to 15 percent from 14 percent next week, the State Bank of Vietnam said late Thursday.

Since mid-February, the rate has been gradually lifted from nine percent, although the bank had not moved since its fourth hike on May 1.

Higher refinancing rates increase the cost for commercial banks that borrow from the central bank to supplement their own capital.

Economist Le Dang Doanh said the move will help the government battle inflation, which hit 22 percent in September year-on-year, while forcing the country's small banks to be more prudent in their lending.

"It's an obvious reaction to assist the weak banks which make up about 14 percent of the banking sector and could be in danger of failing," Doanh said.

Analysts have also expressed concern that the amount of bad loans held by Vietnamese banks may be higher than officially reported, and that struggling smaller financial institutions should be consolidated.

Economists say the dong is under renewed pressure as outstanding US dollar loans come due towards the end of the year. Borrowers in dollars had been taking advantage of much higher interest rates available if they invested in dong, the economists say.

The dong has been relatively stable since a 9.3 percent devaluation in February, and was quoted on Friday at an official rate of 20,653 against the dollar after weakening slightly in recent days.

The State Bank said its interest rate adjustment aimed "to improve the efficiency of the management of the monetary policy and market interest rate co-ordination."

Economists say tighter monetary policy helps reduce inflation but Doanh urged the government to also exercise greater control of its spending.

Vietnam's growth eased slightly to 5.76 percent year-on-year in the first nine months of 2011, compared with 6.54 percent in the same period of 2010, according to an official estimate.

Authorities have maintained a growth target of around six percent for 2011 and are aiming for 18 percent inflation. (AFP)


Back to top Go down
View user profile
Vietnam to lift key interest rate
Back to top 
Page 1 of 1

Permissions in this forum:You can reply to topics in this forum
Post new topic   Reply to topicJump to: