HANOI, Aug. 29 (Xinhua) -- The State Bank of Vietnam (SBV) has decided to increase another 1 percent of compulsory reserves ratio on foreign currency for credit institutions, effective from September this year, to stabilize the foreign currency market.

According to Vietnam News Agency on Monday, compulsory reserves ratio on non-term foreign currency deposits and deposits with terms of less than 12 months will be 8 percent of the total deposits at the State-owned commercial banks (excluding the Vietnam Bank for Agricultural and Rural Development), joint stock banks, 100-percent-foreign owned banks, joint venture banks and foreign banks' branches, and 7 percent at the Bank for Agricultural and Rural Development, the Central People's Credit Fund and cooperative banks.

Compulsory reserves ratio on deposits with terms of longer than 12 months will be 6 percent and 5 percent at these two groups of credit organizations respectively.

The decision replaces the old one issued on June 1 this year by the SBV.

Source:chinaview