By the end of June, the total of deposits in foreign currencies in Da Nang’s banks reached an estimated 3 trillion VND, a decrease of 11.08% compared with late 2013.  Meanwhile, deposits in VND have increased significantly over the period, especially those made by local residents.

Over the first half of the year, the city’s branch of the An Binh Commercial Joint Stock Bank (ABBANK) saw a decrease of about 600,000 USD in its total deposits in foreign currencies, whilst the local branch of the Viet Nam Bank for Agriculture and Rural Development (Agribank) witnessed a drop of 11%.  Local branches of the Mekong Development Joint Stock Commercial Bank (MDB) and the Dong A Bank also saw dramatic declines compared with late last year.  However, the city’s branch of the Bank for Foreign Trade of Viet Nam (Vietcombank) saw an increase of 6.8% on average in its foreign currency deposits over the period.

Customers and staff at ABBANK

According to the Director of the city’s branch of the State Bank of Viet Nam (SBV), Mr Vo Minh, the main reason for the decrease is thought to be the SBV’s stable exchange rate management and its transparent adjustment policy.  In addition, the interest rates on deposits in foreign currencies are no longer attractive to local residents and businesspeople.  As a result, they have preferred to change their foreign currencies into VND before making a deposit in local banks.