HANOI, July 17 (Reuters) - Vietnam's central bank will from next month cut the interest rate on compulsory reserves in the Vietnamese dong that it pays to commercial banks to 1.2 percent from 3.6 percent, a central bank official said on Friday.
There were no changes to the dong compulsory reserve levels, said the official, who declined to be identified.
The new rate will come into effect from Aug. 1, the State Bank of Vietnam said in a statement later.
It will be the second reduction in the dong reserves rate this year after a cut in January, when the central bank lowered it from 8.5 percent.
Since March 1, banks have been asked to set aside compulsory reserves equivalent to 3 percent of their deposits, down from 5 percent previously.
There were no changes to the dong compulsory reserve levels, said the official, who declined to be identified.
The new rate will come into effect from Aug. 1, the State Bank of Vietnam said in a statement later.
It will be the second reduction in the dong reserves rate this year after a cut in January, when the central bank lowered it from 8.5 percent.
Since March 1, banks have been asked to set aside compulsory reserves equivalent to 3 percent of their deposits, down from 5 percent previously.