Weekly Bulletin on Banking Operations (June 8 - 12, 2020)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites (at the end of the days) slightly fluctuated between VND 23,100/23,280 - 23,140/23,320 per USD. At the beginning of the week, the rates were stable at VND 23,140/23,320 per USD, then decreased to VND 23,100/23,280 per USD during the next 2 days (June 9-10, 2020), before going up again to VND 23,140/23,320 per USD; down by VND 20 per USD for both buying and selling rates as compared to the last day of the previous week (June 5, 2020).
2. Mobilization and lending interest rates:
2.1. Mobilization interest rates:
- The mobilization interest rates in VND: The common rates were between 0.1% p.a – 0.2% p.a for demand and below 1-month term deposits, 4.0% p.a – 4.25% p.a for 1-month to below 6-month terms, 4.9% p.a – 6.6% p.a for 6-month to below 12-month terms, and 6.5% – 7.4% p.a for 12-month plus terms.
- The mobilization interest rates in USD: The common mobilization interest rate in USD was 0% p.a for both individuals’ and institutions’ deposits.
2.2. Lending rates:
- The lending interest rates in VND: The common average rates were between 6.0% p.a – 9.0% p.a for short-term loans; 9.0% p.a – 11.0% p.a for medium and long-term loans. The cap for VND lending rate for short-term loans of 5.0% p.a was applied to a number of sectors and fields.
- The lending interest rates in USD: The common rates were between 3.0% p.a – 6.0% p.a. The rates were 3.0% p.a – 4.5% p.a for short-term loans, and 4.2% p.a – 6.0% p.a for medium and long-term loans.
3. Inter-bank transaction operations:
3.1. 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 279,432 billion, an average of VND 55,886 billion per day, an increase of VND 2,779 billion per day as compared to the previous week (June 1-5, 2020); meanwhile the transaction amount in USD was equivalent to VND 128,879 billion, an average of VND 25,776 billion per day, a decrease of VND 2,625 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 66% and 19% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 75% and 11% of the total amount of USD transactions respectively.
3.2. Average inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates decreased slightly for most terms as compared to the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were 0.19% p.a, 0.35% p.a and 1.39% p.a respectively.
- For transactions in USD: The average inter-bank interest rates fluctuated slightly for most terms as compared to the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were 0.11% p.a, 0.17% p.a and 0.29% 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 |
0.19 |
0.35 |
0.48 |
1.39 |
2.41 |
3.62 |
4.93 |
USD |
0.11 |
0.17 |
0.21 |
0.29 |
1.01 |
1.65 |
2.06 |
Translated by VA