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||8 January 2010
Vietnam central bank injects new capital to boost liquidity
The State Bank of Vietnam (SBV) pumped about 15 trillion dong (1$=18,475 dong) for banks via open market on Jan 6 whereby the lending rate amongst banks decreased strongly to 11 percent per year for one week term and the overnight lending rate at 8.5 percent/year, reported VNBusinessNews.com.
Previously, the interbank interest rate stood at 16-17 percent per year, even exceeding 20 percent per year.
According to specialists, if the central bank continues supporting open market, it will help reduce pressure on liquidity for banks and the economy hereby banks will have more capital for lending.
The aim is to bring the interbank interest rate to be equal to the refinancing rate at around 9 percent per year.
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