Developments in Money Market and Inter-bank Market (July 1-5, 2024)
1. Forex market and exchange rates:
During the week of July 1-5, 2024, the exchange rates were on a downward trend. On July 1, 2024, the buying and selling exchange rates quoted on the website of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) were VND 25,244/25,464 per USD, a decrease of 9 VND per USD compared to the last working day of the previous week (June 28, 2024). By the end of July 5, the exchange rates were quoted at VND 25,238/25,458 per USD, down by 6 VND per USD compared to the rates on July 1, 2024.
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 VND in the inter-bank market within the week reached approximately VND 1,573,651 billion, averaging VND 314,730 billion per day, an increase of VND 514 billion per day compared to the previous week. Meanwhile, the transaction amount in USD was equivalent to VND 280,811 billion, averaging VND 56,162 billion per day, an increase of VND 2,067 billion per day compared to the previous week.
Regarding maturities, most of the transactions in VND were for below 1-month terms. The largest volumes of transactions were seen with overnight and 1-week terms, accounting for 92.14% and 3.18% of the total amount of transactions respectively. For transactions in USD, most of the transactions were for short terms. The volumes of transactions for overnight and 1-week terms accounted for 86.30% and 10.40% of the total amount of transactions respectively.
2.2. Inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates for below 1-month terms increased. The average inter-bank interest rate for overnight term experienced the highest increase of 0.71 percentage points, while the average inter-bank interest rate for 2- week experienced the lowest increase of 0.17 percentage points.
- For transactions in USD: The average inter-bank interest rates experienced slight changes as compared to the previous week. Specifically, the average inter-bank interest rates for 1-month and 2-month terms decreased by 0.02 percentage points and 0.05 percentage points respectively.
The specific average inter-bank interest rates were as follows:
Overnight |
1-week |
2-week |
1-month |
3-month |
6-month |
9-month |
|
VND |
4.57 |
4.70 |
4.65 |
4.65 |
5.16 |
5.71 |
- |
USD |
5.31 |
5.34 |
5.37 |
5.40 |
5.46 |
5.75 |
5.74 |
Translated by Le Hang