Vietnam Interest Rate 2007-2011

CFVG MBA-20 Business Economics Nguyen Viet Dung VIETNAM INTEREST RATE 2007-2011: A ROLLER COASTER RIDE I. INTRODUCTION During 2007 2011, Vietnams relate locate fluctuated greatly. In 2007, intimacy enumerates were unchangeable at 8.25%, 6.5%, 4.5%, 11.4% for basic liaison rate, refinancing rate, discount rate, and short-term l residuum rate discoverively; then they surged to their highest at 14%, 15%, 13%, 21% at the end of the second seat of 2008. thusly suddenly they started to drop as low as 7%, 7%, 5%, 6.3% by July 2009, then from in that respect they rebounded and has continued to increase, reaching 9%, 13%, 15%, 20% as of today (which is comparable to their highest in 2008). This magnetic variation is translate in the graph below: [pic] This paper summaries the trend of interest rates for each year from 2007 to 2011 as well as attempts to explain why interest rates have fluctuated in such manner for each period. In addition, this paper in any c ase attempts to identify two important causes that contributed to the fluctuation of interest rates during this period. The first cause which started the fluctuation in interest rate is the sudden surge in FDI start from the end of 2006 to the end of 2008.

The second cause which creates fluctuation later on fluctuation of interest rate is the stop-go and inconsistence macro policies of Vietnam government. II/ variant OF INTEREST rate FOR EACH PERIOD FROM 2007 TO 2011 A. 2007: Accelerating before the motor The good ending of 2006 did have a good commencement ceremony for 2007 with high expectation receivable to the following reasons: Vietnam Communist! troupe 10th Conference obdurate that the main focus for the 2006-2010 Socio-Economic propose is economic growth. High agency level among policy makers, local anaesthetic businesses, foreign investors in the prospect of Vietnam economy after the succeeder of WTO and APEC in 2006. Therefore, governments main anteriority in economic policy for 2007 is to focus on growth. In prepare to achieved this,...If you want to overreach a full essay, order it on our website: OrderCustomPaper.com

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