Weekly information on banking operations (June 25 - 29, 2018)
1. Forex market:
The buying and selling VND/USD exchange rates, which enlisted on website of commercial banks, were slightly increased. The exchange rates at final trading day of the week (29/6/2018) were 22,920/22,990 VND/USD (increased by 90 VND/USD as compared to the final trading day of the previous week).
The SBV will continue to conduct synchronous measures and monetary policy to stabilize the forex market and exchange rate within the set band.
2. Mobilizing and lending rates:
2.1. Mobilizing rates:
- VND mobilizing rates: The rates were commonly 0.6 – 1% p.a for demand and below 1-month terms, 4.3 – 5.5% p.a for 1 month to below 6 month terms, 5.3 – 6.5% p.a for 6 to below 12 month terms; and 6.5 – 7.3% p.a for 12 month plus term.
- USD mobilizing rates: The USD mobilizing rates were commonly 0% p.a for individuals and economic institutions.
2.2. Lending rates:
- VND lending rates: The rates were commonly 6.0% – 9.0% p.a for short-terms, and 9.0% – 11.0% p.a for medium- and long-term ordinary loans.
- USD lending rates were commonly 2.8% – 6.0% p.a. The rates were 2.8 – 4.7% p.a for short-term and 4.5 – 6.0% p.a for medium- and long-term loans.
3. Inter-bank transaction turnover:
3.1. Transactions:
According to reports from credit institutions and foreign bank branches, the total amount of transactions in the inter-bank market reached about VND 189,281 billion, an average of VND 37,856 billion/day, an increase of VND 4,394 billion/day compared with the week of June 18 - 22, 2018; while the USD amount was equivalent to VND 97.089 billion, an average of VND 19,418 billion/day, an increase of VND 833 billion/day compared to the previous week.
Most VND transactions were overnight and 1-week terms (accounting for 39% and 31% of the total amount of VND transactions respectively). Transactions in USD were mostly overnight and 1-week terms, accounting for 58% and 31% of the total amount of USD transactions respectively.
3.2. The average inter-bank interest rates:
- For VND transactions: the average inter-bank interest rates tended to fluctuate as compared to the previous week. Specifically, the inter-bank interest rates for overnight and 1-week were down by 0.08% and 0.09% percentage point to 0.73% p.a, 0.94%p.a; while the inter-bank interest rates for 1-month was slightly increased 0.06% percentage point to 1.72% p.a, respectively.
- For USD transactions: The average inter-bank interest rates increased as compared to the previous week. Specifically, the inter-bank interest rates for overnight, 1-week and 1-month term were up by 0.02%, 0.03% and 0.13% percentage point to 1.96% p.a, 2.04% p.a and 2.30% p.a, respectively.
The specific average inter-bank interest rates were as follows:
Term |
Over night |
1 week |
2 weeks |
1 month |
3 months |
6 months |
9 months |
VND |
0.73 |
0.94 |
1.10 |
1.72 |
2.75 |
3.49 |
- |
USD |
1.96 |
2.04 |
2.02 |
2.30 |
2.51 |
3.39 |
- |
The State Bank of Vietnam
Translated by VA