When the State Bank of Vietnam (SBV) late last week slashed the dollar purchase price, the greenback prices quoted by commercial banks were adjusted immediately.

Reporting high profits, Vietnamese commercial banks have once again lifted concerns about profit growth limits.

The State Treasury has mobilised more than 182.4 trillion VND (7.88 billion USD) through Government bond auctions on the Hanoi Stock Exchange (HNX) so far this year, fulfilling 73 percent of the yearly plan.

This expansion was due mainly to a 4% on-quarter growth in government bonds to US$51 billion as the central bank increased issuance of bills.

Applauding the State Bank of Vietnam’s move to cut the prime interest rate, experts said the 0.25 percentage point cut, however, is relatively modest.

After two big purchases of foreign currencies in the first four months of the year and from July until now, Vietnam’s forex reserves reached the highest level, now at $70 billion.

While the EVFTA and CPTPP have paved the way for Vietnamese enterprises to penetrate the world market, high taxes and interest rates have blocked their path.

Analysts believe that the State Bank of Vietnam (SBV) should follow the move of other central banks to cut interest rates. This would help ease the burden on businesses.

The State Bank of Vietnam (SBV) obtained a large amount of foreign currencies in the first half of 2019, pushing foreign exchange reserves recorded in the period to the highest level to date.

VietNamNet Bridge - Securities companies have predicted that the deposit interest rate will be lifted next year, leading to higher lending interest rates and capital costs for businesses.

A number of banks have rushed to raise the deposit interest rates in the last two months. The record interest rate increases are feared to have a negative impact on the market. 

The US Federal Reserve may adjust the prime interest rate once more, according to Can Van Luc, chief economist of the Bank for Investment & Development of Vietnam (BIDV).

VietNamNet Bridge - FED has decided to raise the prime interest rate by another 0.25-1.25 percent per annum, raising the concern that the foreign direct investment (FDI) flow to Vietnam will slow down.

VietNamNet Bridge - The race of candidates for ‘hot seats’ at commercial banks is heating up as the shareholders’ meeting season has begun.

VietNamNet Bridge - More than VND100 trillion was paid by the eight biggest commercial banks to depositors in 2016. 

Thirteen car brands on show at VMS; VN urged to up competitiveness; Government-backed loans to be temporarily halted

VietNamNet Bridge - The deposits from the public and businesses at commercial banks have soared to VND5,800 trillion. Is this because people now tend to deposit more money or have become more apprehensive of risks?

Foreign investors sold shares in large quantities in early December in anticipation of the expected US Federal Reserve's raising the target interest rate by 0.25 percent. 

 Most of the Reserve Bank of India's (RBI) 17,000 employees went on strike on Thursday in what the central bank described as "mass casual leave".

VietNamNet Bridge - Vietnamese businesses are holding their breath waiting for the US FED’s decision to raise the prime interest rate increase, slated for September.