Weekly Bulletin on Banking Operations (September 24-28, 2018)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were up slightly, from 23,295/23,375 VND to 23,300/23,380 VND against the USD and 23,310/23,390 VND against the USD on the first two day of the week, then down gradually to 23,290/23,370 against the USD on the last day of the week (unchanged as compared to the last day of the previous week).
The State Bank of Vietnam (SBV) continued to conduct synchronous measures and manage the monetary policy to stabilize the forex market and the exchange rates within the set band.
2. Mobilization and lending interest rates:
2.1. Mobilization interest rates:
- The mobilization interest rates in VND: The common rates were between 0.6 – 1% p.a for demand and below 1-month term deposits, 4.3 – 5.5% p.a for 1-month to below 6-month terms, 5.3 – 6.5% p.a for 6-month to below 12-month terms; and 6.5 – 7.3% p.a for 12-month plus terms.
- The mobilization interest rates in USD: The common mobilization interest rate in USD was 0% p.a for both individuals’ and institutions’ deposits.
2. 2.2. Lending rates:
- The lending interest rates in VND: The common average rates were between 6.0 – 9.0% p.a for short-term loans; 9.0 – 11.0% p.a for medium and long-term loans.
- The lending interest rates in USD: The common rates were between 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 operations:
3.1. 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 212,443 billion, an average of VND 42,489 billion/day, an increase of VND 4,914 billion/day as compared to the week of September 17-21, 2018; meanwhile the transaction amount in USD was equivalent to VND 118,626 billion, an average of VND 23,725 billion/day, an increase of VND 2,287 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms (accounting for 48% and 27% of the total amount of VND transactions respectively). The transactions in USD were mostly for overnight and 1-week terms, accounting for 66% and 24% of the total amount of USD transactions respectively.
3.2. The average inter-bank interest rates:
- For transactions in VND: As compared to the previous week, most average inter-bank interest rates were on a slight downward trend. Specifically, the inter-bank interest rates for overnight and 1 week were down from 2.49% and 2.73% to 2.48% p.a and 2.69% p.a respectively, and 3.5% p.a respectively. The inter-bank interest rate for 1-month term was unchanged at 3.5% p.a.
- For transactions in USD: the average inter-bank interest rates were on a slight upward trend. Specifically, the inter-bank interest rates for overnight, 1 week and 1-month terms increased by 0.13 percentage point, 0.15 percentage point and 0.04 percentage point respectively to 2.14% p.a, 2.28% and 2.36% p.a respectively.
The specific average inter-bank interest rates were as follows:
Term |
Overnight |
1-week |
2-week |
1-month |
3-month |
6-month |
9-month |
VND |
2.48 |
2.69 |
2.95 |
3.5 |
4.18 |
5.22 |
4.21 |
USD |
2.14 |
2.28 |
2.33 |
2.36 |
2.69 |
3.04 |
3.94 |
Translated by Le Hang