Vietnam’s central bank supports banking system’s liquidity

HANOI, Sept. 18 (Xinhua) — The State Bank of Vietnam has supported the banking system’s liquidity by reducing the interest rate on the open market operation (OMO) channel from 4.25 percent to 4 percent per year, Vietnam News Agency reported Wednesday.
This aims to establish a lower interbank interest rate level in the near future, said the bank.
The move is also likely to help mitigate issues as the foreign exchange rate has been plummeting in recent weeks.
Earlier in August, the State Bank of Vietnam cut down the OMO interest rate for the first time from 4.5 percent to 4.25 percent per year. ■