Vietnam central bank to cut reserve interest rates from Sep 1 -state media

FILE PHOTO: The State Bank of Vietnam building is seen in Hanoi, Vietnam September 8, 2017. REUTERS/Kham

HANOI (Reuters) - Vietnam's central bank will cut the interest rate it pays on non-compulsory USD-denominated reserves held at banks to 0% from 0.05% 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 0.5% from next month, the official Vietnam News Agency said, from the current range of 0.5%-0.8%.

The rate it pays for compulsory USD-denominated reserves will remain at 0%, 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.