Accordingly, the interest rate of compulsory reserves in VND at banks will be 0.5 percent per annum, and the interest rate on dong deposits from banks that exceed the minimum 3 percent requirement will be zero percent per annum, down 0.5 percent compared to the rates stipulated in a decision on March 16 this year.

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Meanwhile, the interest rate for deposits in VND by the Vietnam Development Bank (VDB) and Vietnam Bank for Social Policies (VBSP), both state-owned banks; People's Credit Funds and microfinance institutions will be reduced by 0.2 percent to 0.8 percent per annum.

The interest rate for deposits of the State Treasury and the Deposit Insurance of Vietnam with the SBV is revised down to 0.8 percent per annum, down 0.2 percent.

The SBV said the adjustment was made based on macro-economic developments and the level of interest rates in the market.

Source: VNA