February 07, 2024 | 12:00 GMT+7

Deposit interest rates down to record low

Tùng Thư -

Rates hit their lowest for two decades.

Deposit interest rates at commercial banks continue to head downwards, standing at 4.73-4.98 per cent per annum in January, the lowest rate for the past two decades, according to WiGroup, a provider of economic data and fintech solutions in Vietnam.

The strongest decline was recorded at State-owned commercial banks as a result of abundant capital sources.

Regarding the exchange rate, the USD/VND rate in the free market rose 1.7 per cent in January while the rate at commercial banks increased 0.8 per cent.

Experts said that the US Federal Reserve (US Fed) continued to maintain existing interest rates at its last meeting, while it also sent a message that the uncertainties revealed at the meeting may put certain pressure on exchange rates in the beginning of the year.

However, positive FDI flows to Vietnam and the country’s trade balance in January are considered solid factors helping manage interest rates effectively at this time.

Vietnam attracted $2.46 billion in FDI in January, up 40.2 per cent year-on-year.

A trade surplus of nearly $3 billion was maintained, helping increase foreign reserves and contribute to stabilizing exchange rates, WiGroup said.

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