Developments in Money Market and Inter-bank Market (October 4 - 8, 2021)
1. Forex market and exchange rates:
During the week of October 4 - 8, 2021, the USD/VND exchange rates and the forex market were relatively stable, and the market liquidity was ensured for smooth operations. On October 4, the buying and selling exchange rates quoted on the website of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) were at VND 22,660/22,860 per USD, unchanged as compared with the rates of the last working day of the previous week (October 1, 2021). By end of October 8, the exchange rates were quoted at VND 22,660/22,860 per USD, unchanged as compared with the rates of October 4, 2021.
2. Inter-bank transaction operations:
2.1. Transactions:
According to the reports submitted by the credit institutions and the foreign bank branches, the total amount of transactions in the inter-bank market within the week reached approximately VND 688,891 billion, an average of VND 137,778 billion per day, a decrease of VND 24,369 billion per day as compared to the previous week (September 27 – October 1, 2021); meanwhile the transaction amount in USD was equivalent to VND 155,064 billion, an average of VND 31,013 billion per day, a decrease of VND 5,703 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 80% and 11% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 61% and 28% of the total amount of USD transactions respectively.
2.2. Inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates experienced opposite movements as compared to those of the previous week. Specifically, the average inter-bank interest rate for overnight term remained at 0.67% p.a., while the average inter-bank interest rate for 1-week term decreased by 0.03 percentage points, to 0.78% p.a. Meanwhile, the average inter-bank interest rate for 1-month term increased by 0.43 percentage points, to 1.31% p.a.
- For transactions in USD: The average inter-bank interest rates of the key terms were relatively stable, with slight fluctuations around those of the previous week. Specifically, the average inter-bank interest rate for overnight term remained at 0.10% p.a. Meanwhile, the average inter-bank interest rates for 1-week and 1-month terms decreased by 0.01 percentage point and 0.07 percentage points respectively, to 0.11% p.a. and 0.19% p.a. respectively.
The specific average inter-bank interest rates were as follows:
Unit: % p.a
Overnight |
1-week |
2-week |
1-month |
3-month |
6-month |
9-month |
|
VND |
0.67 |
0.78 |
1.03 |
1.31 |
2.05 |
2.97 |
3.69 |
USD |
0.10 |
0.11 |
0.16 |
0.19 |
0.39 |
0.86 |
0.00 |
Translated by LK.