Developments in Money Market and Inter-bank Market (August 30 – September 1, 2021)
1. Forex market and exchange rates:
During the week of August 30 – September 1, 2021, the exchange rates and the forex market were relatively stable and the market liquidity was ensured for smooth operations. On August 30, 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 22,680/22,880 per USD, down by 10 VND per USD as compared to those of the last working day of the previous week (August 27, 2021). By end of September 1, the exchanged rates were quoted at VND 22,680/22,880 per USD, unchanged as compared to the rates of August 30, 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 502,885 billion, an average of VND 100,577 billion per day, a decrease of VND 54,771 billion per day as compared to the previous week (August 23-27, 2021); meanwhile the transaction amount in USD was equivalent to VND 93,388 billion, an average of VND 18,678 billion per day, a decrease of VND 10,285 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 58% and 35% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 50% and 40% 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 developments. Specifically, the average inter-bank interest rates for overnight and 1-month terms increased by 0.01 percentage point and 0.43 percentage points respectively, to 0.65% p.a and 1.78% p.a respectively. Meanwhile, the average inter-bank interest rate for 1-week term decreased by 0.01 percentage point, to 0.72% 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. The average inter-bank interest rate for 1-week term decreased by 0.01 percentage point, to 0.11% p.a; while the average inter-bank interest rate for 1-month term increased by 0.01 percentage point, to 0.21% p.a.
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 |
0.65 |
0.72 |
0.97 |
1.78 |
1.88 |
2.72 |
3.64 |
USD |
0.10 |
0.11 |
0.14 |
0.21 |
0.30 |
1.86 |
0.00 |
Translated by Le Hang.