Weekly Bulletin on Banking Operations (November 19-23, 2018)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were on an upward trend on the first four days of the week, from VND 23,270/23,360 against the USD to different levels, and reached VND 23,305/23,395 VND/USD against the USD on November 22, 2018, then changed to a downward trend to VND 23,285/23,375 against the USD on the last day of the week (up by VND 20 per USD for both buying and selling rates 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% p.a – 1% p.a for demand and below 1-month term deposits, 4.3% p.a – 5.5% p.a for 1-month to below 6-month terms, 5.3% p.a – 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. 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% p.a – 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% p.a – 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 214,496 billion, an average of VND 42,899 billion/day, an increase of VND 998 billion/day as compared to the week of November 12-16, 2018; meanwhile the transaction amount in USD was equivalent to VND 96,404 billion, an average of VND 19,281 billion/day, a decrease of VND 3,241 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms (accounting for 55% and 22% of the total amount of VND transactions respectively). The transactions in USD were mostly for overnight and 1-week terms, accounting for 66% and 18% 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, the average inter-bank interest rates for the dominant terms were on a stable trend. Specifically, the inter-bank interest rates for 1-week and 1 month terms were stable at 4.76% p.a and 5.02% p.a respectively; the inter-bank interest rate for overnight term was down by 0.02 percentage points p.a to 4.77% p.a.
- For transactions in USD: the average inter-bank interest rates fluctuated. Specifically, the inter-bank interest rates for overnight and 1-week terms increased by 0.02 percentage points p.a and 0.01 percentage points p.a to 2.27% p.a and 2.33% respectively; meanwhile, the average inter-bank interest rate for 1-month term was down by 0.2 percentage points p.a to 2.53% p.a.
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 |
4.77 |
4.76 |
4.86 |
5.02 |
5.24 |
5.74 |
5.68 |
USD |
2.27 |
2.33 |
2.40 |
2.53 |
2.86 |
3.73 |
- |
Translated by Le Hang