Weekly Bulletin on Banking Operations (May 20 - 24, 2019)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were stable at VND 23,345/23,465 against the USD in the first two days, slightly reduced by 10 - 15 VND/USD in the next two days, then slightly increased to VND 23,335/23,455 against the USD on the last day of the week (up by 05 VND/USD for both buying and selling exchange rates as compared to the last day May 17,2019 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 0.5% p.a – 1% p.a for demand and below 1-month term deposits, 4.5% p.a – 5.5% p.a for 1-month to below 6-month terms, 5.5% p.a – 6.5% p.a for 6-month to below 12-month terms; and 6.6% – 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 loans and 4.5 – 6.0% p.a for medium and long-term loans.
3. Inter-bank transaction operations:
3.1. Transaction amounts:
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 260,298 billion, an average of VND 52,060 billion/day, an increase of VND 895 billion/day as compared to the week of May 13 - 17, 2019; meanwhile the transaction amount in USD was equivalent to VND 124,493 billion, an average of VND 24,899 billion/day, an increase of VND 2,639 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms (accounting for 61% and 20% of the total amount of VND transactions respectively). The transactions in USD were mostly for overnight and 1-week terms, accounting for 58% and 24% of the total amount of USD transactions respectively.
3.2. Average inter-bank interest rates:
- For transactions in VND: As compared to the previous week, the average inter-bank interest rates were on an downward trend for most major terms. Specifically, the inter-bank interest rates for overnight, 1-week and 1-month terms were down by 0.17 percentage points p.a, 0.03 percentage points p.a and 0.17 percentage points p.a to 3.11% p.a, 3.35% p.a and 3.89% p.a respectively.
- For transactions in USD: The average inter-bank interest rates slightly fluctuated around the rates of the previous week. Specifically, the inter-bank interest rates for overnight, 1-week and 1-month terms were 2.44% p.a, 2.51% p.a and 2.69% 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 |
3.11 |
3.35 |
3.44 |
3.89 |
4.28 |
4.71 |
- |
USD |
2.44 |
2.51 |
2.58 |
2.69 |
2.75 |
3.32 |
3.16 |
Translated by Mai Huong