Domestic banking operations are stable, the State Bank of Vietnam (SBV) affirmed in a report on February 12.

The commercial banks showed good liquidity from January, with the interest rates for deposits in Vietnamese dong ranging from 1 to 1.2 percent per year for terms of less than a month, 5 to 7 percent for one- to six-month terms, 6.5 to 7.5 percent for six- to 12-month terms, and 7.5 to 8.5 percent for terms over a year.

For US dollar deposits, the popular interest rates were equivalent to the ceiling levels stipulated by the central bank, hovering around 0.25 percent for institutional depositors and 1.25 percent for the public.

Low interest rates of 7 to 9 percent were maintained for VND loans in prioritised sectors, including agriculture and rural areas, export, small- and medium-sized enterprises, hi-tech firms and support industries.

In other production and business areas, the rates were between 9 and 11.5 percent for short-term loans, and 11.5 to 13 percent for medium- to long-term loans. Some businesses with healthy finances and efficient performance enjoyed rates of 6.5 to 7 percent.

For USD loans, the short-term interest rates varied between 4 and 6 percent and long-term levels were between 6 and 7 percent.

The foreign exchange market also saw stable developments from January, as the market liquidity was good and the lending institutions were the net buyers in foreign currency transactions with their customers, while the exchange rates tended to decline.

On February 13, the commercial banks were buying a dollar for 21,090 VND and selling it at 21,130 on average. The average inter-bank interest rate is 21,036 VND per dollar, according to the SBV website.-VNA