Developments in Money Market and Inter-bank Market (January 03 - 07, 2022)
1. Forex market and exchange rates:
During the week of January 03 - 07, 2022, the USD/VND exchange rates and the forex market were relatively stable and the market liquidity was ensured for smooth operations. On January 03, 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 22,640/22,920 per USD, unchanged as compared with the rates of the last working day of the previous week (December 31, 2021). By end of January 07, the exchange rates were quoted at VND 22,570/22,850 per USD, down by 70 VND per USD as compared with the rates of January 03, 2022.
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 522,249 billion, an average of VND 130,562 billion per day, a decrease of VND 32,146 billion per day as compared to the previous week (December 27 - 31, 2021); meanwhile the transaction amount in USD was equivalent to VND 143,195 billion, an average of VND 35,799 billion per day, an increase of VND 4,044 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 84% and 8% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 68% and 18% 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 a clear upward trend as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight and 1-month terms increased by 0.5 percentage points and 0.19 percentage points respectively, to 1.42% p.a. and 2.07% p.a. respectively.
- For transactions in USD: The average inter-bank interest rates remained relatively stable as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight and 1-week terms were unchanged as compared to those of the previous week, standing at 0.11% p.a. and 0.14% p.a. respectively. Meanwhile, the average inter-bank interest rate for 1-month term decreased slightly by 0.01 percentage point, to 0.28% 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 |
1.42 |
1.82 |
2.38 |
2.07 |
2.97 |
2.89 |
3.81 |
USD |
0.11 |
0.14 |
0.18 |
0.28 |
0.39 |
1.15 |
- |
Translated by LK.