” Unlike many other countries, Vietnam began reducing its policy rates earlier- starting in mid-2023 to support economic recovery. The state Bank of Vietnam (SBV) lowered policy rates four times, taking the refinancing rate down to 4.5% per year and the discount rate to 3% per year, encouraging commercial banks to lower both deposit and lending rates.
This led to negative interest rate gap between the Vietnam dong and the US. dollar, prompting foreign capital outflows and the rapid depreciation of the Vietnamese currency from June 2023 to June 2024.” – The Saigon Times
Source: Foreign Capital Poised To Return (thesaigontimes.vn)
Foreign Capital Poised To Return
