HANOI : Vietnam's central bank will cut the interest rate it pays on non-compulsory USD-denominated reserves held at banks to 0per cent from 0.05per cent a year from September, state media reported on Friday.
The rate the central bank pays for all dong-denominated compulsory deposits held by banks will be cut to 0.5per cent from next month, the official Vietnam News Agency said, from the current range of 0.5per cent-0.8per cent.
The rate it pays for compulsory USD-denominated reserves will remain at 0per cent, according to the report, which cited a central bank document.
The central bank last cut its reserve interest rates in August last year to help prop up the country's virus-hit economy.
(Editing by Ed Davies)