State Bank Of Vietnam

The move is aimed to ease the pressure of a stronger US dollar on international markets.

Monetary policy should be maneuvered in a flexible and active manner to ensure sustainable growth and stability of both monetary and foreign-exchange markets, said the Party chief Nguyen Phu Trong.

The central bank will continue to monitor actual economic situation and that of the pandemic to expand credit support appropriately.

Demand for credit may increase sharply since the second quarter, especially in fields of industrial production, exports, trade and tourism, said a senior official of the central bank.

As the government looks to push for public investment and the central bank keeps a low interest rate environment to aid economic growth, banks are expected to be the first beneficiaries from an economic rebound.

The Central bank has lowered its interest rate cap three times by a combined of 1.5-2 percentage points per annum, which is the largest cut in the region.

The central bank has taken both monetary and fiscal policies all together to ensure macro and social stability.

The grant will incentivize participating banks in Vietnam to restructure existing loans or extend new loans to at least 500 women-led small and medium-sized enterprises.

As of the end of the third quarter, Vietnam has around 93.78 million bank cards in circulation, in which the majority are magnetic cards.

A devaluation of the Vietnamese dong will disrupt and cause severe consequences to the local economy, said an expert.