Monday, November 20, 2006

Money demand increased

Demand for Vietnamese dong has been picking up and should continue to rise into early next year, but bankers said increased supply should alleviate any shortages.
The interest rates for overnight dong loans went up to 7.0%. Their six-month rate edged up to 8.7 percent.
The central bank has asked state-run banks to provide a daily report on the availability of their dong funds between February 1 to 15 to help regulate the supply and demand of currency ahead of the Lunar New Year Tet festival.
In the weeks leading up to Tet, companies and individuals in Vietnam's cash-based economy often need more money to clear debt and pay bonuses and consumer loans are also higher.
Bankers said the central bank's open market had been efficient in supplying funds, helping improve liquidity.

No comments: