Weekly Bulletin on Banking Operations (January 13 – 17, 2020)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites slightly increased by VND 5-10 per USD each day, from VND 23,110/23,230 to VND 23,125/23,245 against the USD during the first three days of the week; then the rates decreased back to VND 23,110/23,230 against the USD on the next day, and were finally quoted at VND 23,105/23,245 against the USD on the last day of the week (down by VND 5 per USD for the buying rate and increased by VND 15 per USD for the selling rate as compared to the last day of the previous week (January 6-10, 2020)).
2. Mobilization and lending interest rates:
2.1. Mobilization interest rates:
- The mobilization interest rates in VND: The common rates were between 0.2% p.a – 0.8% p.a for demand and below 1-month term deposits, 4.3% p.a – 5.0% p.a for 1-month to below 6-month terms, 5.3% p.a – 7.0% p.a for 6-month to below 12-month terms, and 6.6% – 7.5% 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% p.a – 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 3.0% p.a – 6.0% p.a. The rates were 3.0% p.a – 4.7% p.a for short-term loans, and 4.5% p.a – 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 304,063 billion, an average of VND 60,813 billion per day, an increase of VND 6,968 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 142,934 billion, an average of VND 28,587 billion per day, an increase of VND 4,328 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 72% and 10% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 62% and 20% 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 most terms decreased. Specifically, the average inter-bank interest rates for overnight term, 1-week term and 1-month term were down by 0.03 percentage points p.a, 0.19 percentage points p.a and 0.38 percentage points p.a to 1.09% p.a, 1.48% p.a and 3.54% p.a respectively.
- For transactions in USD: The average inter-bank interest rates slightly fluctuated for most terms as compared to previous week. Specifically, the average inter-bank interest rates for overnight term, 1-week and 1-month terms were 1.59% p.a, 1.63% p.a and 1.9% 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 |
1.09 |
1.48 |
3.23 |
3.54 |
3.88 |
4.98 |
5.93 |
USD |
1.59 |
1.63 |
1.74 |
1.90 |
2.25 |
2.57 |
- |
Translated by VA