Central bank ceases bill issue for first time in nearly two months
The State Bank of Viet Nam (SBV) on Tuesday ceased the issue of bills to withdraw money out of the banking system for the first time in nearly two months.
The State Bank of Viet Nam (SBV) on Tuesday ceased the issuance of bills to withdraw money from the banking system for the first time in nearly two months.
It was the first withdrawal made by the SBV since January 20.
Previously, just before the Lunar New Year, SBV unexpectedly issued bills to withdraw money on January 20 though capital demands were often high during the country’s largest holiday. The move was aimed to control inflation.
From the day to March 10, SBV withdrew a total of up to nearly VNĐ147 trillion (US$7.39 billion) by issuing bills, of which some issue sessions were very large worth up to VNĐ8-10 trillion (US$347.83 – 434.78 million) each.
The bills had an interest rate of 2.8 per cent per year on January 20. The rate then was lowered to 2.65 per cent per year from January 21 to March 10.
As the maturity of the 91-day bills will start from at the end of April, VNĐ147 trillion will gradually return to the market from the month. — VNS
