The State Bank of Vietnam (SBV) has adjusted the Vietnamese dong (VND) and U.S. dollar reference rate from 20,828 to 21,036, for the first time since December 2012, according to the bank's statement on its website Friday.

The 1 percent adjustment, effective from June 28, is aimed at improving the balance of payments and increasing foreign exchange reserves amid efforts by the government to boost exports and speed up economy, reported SBV.

Additionally, the maximum interest rate for non-term and under- one-month term bank deposits in VND will drop from 2 percent to 1. 2 percent per year, while the rate will reduce from 7.5 percent to 7 percent per year for deposits with term from one month to six months.

SBV also will apply reduction from 0.5 percent to 0.25 percent per year to deposits in U.S. dollar.

At the same time, the short-term lending interest rate in VND will be cut from 10 percent to 9 percent per annum for prioritized sectors including agriculture, export, supporting industry, and small and medium-sized enterprises and high-tech firms.

The SBV has cut rates eight times since 2012, with the refinancing rate coming down to 7 percent from a high of 15 percent in the first quarter of last year.