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Vietnam to force banks to buy treasury bills to fight inflation | Vietnam to force banks to buy treasury bills to fight inflation |
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| Wednesday, 20 February 2008 | |
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Agence France-Presse . Hanoi Communist Vietnam's central bank will require banks and credit institutions to buy 20.3 trillion dong ($1.27b) in treasury bills next month, aiming to soak up liquidity and fight inflation. The State Bank of Vietnam will compel 41 major credit institutions to buy up the 364-day treasury bills to be issued from March 17 at an annual interest rate of 7.8 per cent, the bank said in a statement on its website. Consumer price rises in Vietnam topped 14 per cent in January year-on-year. The SBV move is part of a 'stricter and more cautious monetary policy and to ensure the stability of Vietnamese currency,' the SBV statement said. Rural and agricultural banks and smaller credit institutions will be exempted, the Saigon Times said. |
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