Developments in Money Market and Inter-bank Market (December 20-24, 2021)
1. Forex market and exchange rates:
During the week of December 20-24, 2021, the USD/VND exchange rates and the forex market were relatively stable and the market liquidity was ensured for smooth operations. On December 20, 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 22,790/23,070 per USD, down by 30 VND per USD as compared with the rates of the last working day of the previous week (December 17, 2021). By end of December 24, the exchange rates were quoted at VND 22,730/23,010 per USD (down by 60 VND per USD as compared with the rates of December 20, 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 831,291 billion, an average of VND 166,258 billion per day, an increase of VND 12,960 billion per day as compared to the previous week (December 13-17, 2021); meanwhile the transaction amount in USD was equivalent to VND 162,847 billion, an average of VND 32,569 billion per day, a decrease of VND 2,420 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 84% and 3% 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.
2.2. Inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates increased for most terms. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms increased by 0.43 percentage points, 0.50 percentage points, and 0.70 percentage points respectively, to 1.14% p.a., 1.43% p.a., and 2.14% p.a. respectively.
- For transactions in USD: The average inter-bank interest rates experienced little changes as compared to those of the previous week. Specifically, the average inter-bank interest rate for overnight, 1-week and 1-month terms were 0.11% p.a, 0.17% p.a and 0.23% 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 |
1.14 |
1.43 |
1.76 |
2.14 |
2.65 |
2.65 |
2.71 |
USD |
0.11 |
0.17 |
0.20 |
0.23 |
0.60 |
1.19 |
1.18 |
Translated by Le Hang