Money market stable by year end

07-Jan-2007 Intellasia | 7-NOV-2002 Dau Tu Page 7 | 2:03 PM Print This Post

The last months this year will see no sharp fluctuations on interest rates and exchange rates, said central bank deputy governor Phung Khac Ke.

Ke said there were no sharp volatilities in exchange rates since early this year. The US dollar/Dong rate has risen by only 2%, which is far lower than the level of 4% anticipated this year.

Though the trade deficit this year is estimated at US$2 billion, the deficit has been offset by other sources with accelerated disbursement of official development assistance funds, increased overseas remittances. Additionally, the demand for US dollar loans of businesses is at a low level and forex liquidity of banks and the unofficial market remain high.

Concerning dong interest rates, Ke envisaged that banks will likely raise lending rates to maintain margins as dong deposit rates have kept surging since the start of the year. Dong deposit rate now stands at 8% a year for 12-month terms.


Category: Finance

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