Vietnam Central Bank Adjusts Policy to Stabilize Dong

The State Bank of Vietnam announced a series of monetary policy adjustments aimed at stabilizing its currency, the Dong. The Bank raised the reserve ratio on USD deposits by 200 basis points to a new range of 3-6% from May. The Bank also placed a maximum interest rate on USD deposits of 3.00% for individuals and 1.00% for non-credit institutions from 13 April 2011. The Bank also increased the reserve ratio for non-term USD deposits to 6% from 4%. Vietnam recorded inflation of 13.89% in March.

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