Developments in Money Market and Inter-bank Market (March 07 – 11, 2022)
1. Forex market and exchange rates:
During the week of March 07 – 11, 2022, the forex market was relatively stable, the USD/VND exchange rates experienced a slight upward trend, and the market liquidity was ensured for smooth operations. On March 07, 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 22,710/22,990 per USD, up by 10 VND per USD as compared with the rates of the last working day of the previous week (March 04, 2022). By end of March 11, the exchange rates were quoted at VND 22,730/23,010 per USD, up by 20 VND per USD as compared with the rates of March 07, 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 1,008,495 billion, an average of VND 201,699 billion per day, a decrease of VND 10,129 billion per day as compared to the previous week (February 28 - March 04, 2022); meanwhile the transaction amount in USD was equivalent to VND 180,371 billion, an average of VND 36,074 billion per day, a decrease of VND 588 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 87% 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 77% and 13% 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 downward trend in most of the terms 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 0.29 percentage points, 0.22 percentage points and 0.11 percentage points respectively, to 2.24% p.a., 2.29% p.a. and 2.55% p.a. respectively.
- For transactions in USD: The average inter-bank interest rates experienced opposite movements in different terms as compared to those of the previous week. Specifically, the average inter-bank interest rate for 1-week term increased slightly by 0.03 percentage points to 0.19% p.a. Meanwhile, the average inter-bank interest rate for 1-month term decreased by 0.04 percentage points to 0.33% p.a. The average inter-bank interest rate for overnight term was unchanged and remained at 0.13% 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 |
2.24 |
2.29 |
2.49 |
2.55 |
3.12 |
3.60 |
3.85 |
USD |
0.13 |
0.19 |
0.27 |
0.33 |
0.72 |
1.92 |
- |
Translated by LK.