According to the governor, after the Fed hiked the interest rate on September 21, currencies in many countries have depreciated against the US dollar, such as theEuro by 1.31%, British pound by 0.95%, and yuan by 0.44%.

Since the beginning of this year, the Japanese yen has depreciated by 25%, the Euro 13.5%, British pound by 20%, and Thai bath 11.95%, while the Vietnamese dong has depreciated only 3.8%.

As of September 21, the US dollar had increased 15% compared to 2021 and 19% year-on-year. This is the highest increase in the past 38 years and is also the reason why other currencies have depreciated sharply against the US dollar.

In that context, the Vietnamese currency is still among the least depreciated in the world, Hong stated.

She went on to say that the biggest challenge in macroeconomic administration is to control inflation, although international organisations have assessed that this year, Vietnam will be able to curb inflation below 4% as the target set by the National Assembly.

The central bank will continue to control the exchange rate, and intervene in the foreign currency market to limit fluctuations to help stabilise the foreign currency market.

State Bank revises up interest rates by 1% from September 23

Governor of the State Bank of Vietnam Nguyen Thi Hong has issued decisions on revising up several interest rates by 1%, starting from September 23.

Under the Decision No. 1606/QĐ-NHNN dated September 22, the refinancing interest rate will be set at 5% per year, rediscount at 3.5%, and overnight inter-banking lending rate at 6%.

Under another decision, the interest rate for non-term and one-month deposits in Vietnamse dong is capped at 0.5% annually while that for 1-6 month deposits is 5%.

Deposits of 1-6 months at people’s credit funds and micro-finance organisations will enjoy an annual interest rate of 5.5%.

Source: VNA