The currency’s value fell to nearly CN¥7 per US dollar, before stabilizing in early 2017.
“By helping banks with more cash availability, we will be able to bring down lending interest rates at banks without having to cut our policy rates.”
Nguyen Hoang Minh, deputy head of the State Bank of Vietnam in Ho Chi Minh, said remittances to the city are forecast to rise 10 percent to 5.5 billion dollars this year, helping ensure enough supply of foreign currency.
The Finance Ministry is pressuring the Bank of Thailand to cut interest rates to stimulate growth while the central bank pushed back against calls to cut its benchmark interest rate.
India’s foreign currency reserves are set to hit a new high of 400 billion dollars while holdings of international currencies in South Korea, Taiwan, Thailand and Indonesia are all at record levels.
Thailand's sovereign bonds don’t yield much more than US Treasuries, they cost less to insure than Spanish notes and its currency is more stable than China’s managed yuan.