Weekly information on banking operations (July 23 - 27, 2018)
1. Forex market:
The buying and selling VND/USD exchange rates, which enlisted on website of commercial banks, were slightly increased. The exchange rates at the first 2 days of the week were slightly increased to 23,200/23,280 VND/USD, then the rates began to decrease within the next 2 days to 23,150/23,235 VND/USD (by July 26, 2018). At the final trading day of the week, the exchange rates were up again to 23.200/23.280 USD/VND (increased by 185 VND/USD (for buying) and increased by 195 VND/USD (for selling) as compared to the final trading day of the previous week).
The SBV will continue to conduct synchronous measures and monetary policy to stabilize the forex market and exchange rate within the set band.
2. Mobilizing and lending rates:
2.1. Mobilizing rates:
- VND mobilizing rates: The rates were commonly 0.6 – 1% p.a for demand and below 1-month terms, 4.3 – 5.5% p.a for 1 month to below 6 month terms, 5.3 – 6.5% p.a for 6 to below 12 month terms; and 6.5 – 7.3% p.a for 12 month plus term.
- USD mobilizing rates: The USD mobilizing rates were commonly 0% p.a for individuals and economic institutions.
2.2. Lending rates:
- VND lending rates: The rates were commonly 6.0% – 9.0% p.a for short-terms, and 9.0% – 11.0% p.a for medium- and long-term ordinary loans.
- USD lending rates were commonly 2.8% – 6.0% p.a. The rates were 2.8 – 4.7% p.a for short-term and 4.5 – 6.0% p.a for medium- and long-term loans.
3. Inter-bank transaction turnover:
3.1. Transactions:
According to reports from credit institutions and foreign bank branches, the total amount of transactions in the inter-bank market reached about VND 136,037 billion, an average of VND 27,207 billion/day, an increase of VND 1,680 billion/day compared with the week of July 16 - 20, 2018; while the USD amount was equivalent to VND 96,555 billion, an average of VND 19,311 billion/day, a increase of VND 1,920 billion/day compared to the previous week.
Most VND transactions were overnight and 1-week terms (accounting for 54% and 19% of the total amount of VND transactions respectively). Transactions in USD were mostly overnight and 1-week terms, accounting for 58% and 26% of the total amount of USD transactions respectively.
3.2. The average inter-bank interest rates:
- For VND transactions: the average inter-bank interest rates tended to increase as compared to the previous week. Specifically, the inter-bank interest rates for overnight, 1-week and 1-month were up by 2.04%, 1.77% and 1.91% percentage point to 4.04% p.a, 4.00% p.a and 4.57% p.a, respectively.
- For USD transactions: The average inter-bank interest rates were slightly decreased as compared to the previous week. Specifically, the inter-bank interest rates for overnight, 1-week and 1-month were down by 0.03%, 0.04% and 0.18% percentage point to 1.98% p.a, 2.08% p.a and 2.39% p.a, respectively
The specific average inter-bank interest rates were as follows:
Term |
Over night |
1 week |
2 weeks |
1 month |
3 months |
6 months |
9 months |
VND |
4.04 |
4.00 |
4.40 |
4.57 |
4.25 |
4.99 |
- |
USD |
1.98 |
2.08 |
2.12 |
2.39 |
2.78 |
3.00 |
- |
The State Bank of Vietnam
Translated by VA