Developments in Money Market and Inter-bank Market (July 10-14, 2023)
1. Forex market and exchange rates:
During the week of July 10-14, 2023, the exchange rates experienced opposite movements. On July 10, 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 23,480/23,820 per USD, up by 10 VND per USD as compared with the rates of the last working day of the previous week (July 7, 2023). By end of July 14, the exchange rates were quoted at VND 23,470/23,810 per USD, down by 10 VND per USD as compared with the rates of July 10, 2023.
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 1,117,196 billion, an average of VND 223,439 billion per day, a decrease of VND 7,849 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 297,790 billion, an average of VND 59,558 billion per day, an increase of VND 7,289 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 86% and 7% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 77% and 17% of the total amount of USD transactions respectively.
2.2. Inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates decreased as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms decreased by 0.37 percentage points p.a., 0.51 percentage points p.a., and 0.75 percentage points p.a. respectively, to 0.22% p.a., 0.41% p.a., and 2.38% p.a. respectively.
- For transactions in USD: The average inter-bank interest rates were relatively stable and experienced slight fluctuations around the rates of the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were at 4.86% p.a., 4.87% p.a., and 5.12% 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 |
0.22 |
0.41 |
0.69 |
2.38 |
4.54 |
6.90 |
7.76 |
USD |
4.86 |
4.87 |
4.96 |
5.12 |
5.29 |
6.24 |
6.06 |
Translated by Le Hang.