Weekly Bulletin on Banking Operations (March 23-27, 2020)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites (at the end of the day) decreased from VND 23,600/23,760 per USD to VND 23,490/23,650 per USD during the first two days of the week; then up by VND 25-45 per USD per day for the next three days of the week and were quoted at VND 23,560 / 23,720 against the USD on Thursday (March 26). At the end of the week, the exchange rates decreased slightly and were quoted at VND 23,540 / 23,700 against the USD (up by VND 170 per USD for both buying and selling rates as compared to the last day of the previous week (March 20, 2020)).
2. Mobilization and lending interest rates:
2.1. Mobilization interest rates:
- The mobilization interest rates in VND: The common rates were between 0.1% p.a – 0.5% p.a for demand and below 1-month term deposits, 4.3% p.a – 4.75% p.a for 1-month to below 6-month terms, 5.3% p.a – 6.8% p.a for 6-month to below 12-month terms, and 6.6% – 7.4% 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 354,704 billion, an average of VND 70,941 billion per day, an increase of VND 6,564 billion per day as compared to the previous week (March 16-20, 2020); meanwhile the transaction amount in USD was equivalent to VND 140,778 billion, an average of VND 28,156 billion per day, an increase of VND 7,363 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 71% and 13% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 83% and 6% of the total amount of USD transactions respectively.
3.2. The average inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates decreased for most terms as compared to the previous week, except for the interest rates for 1-month term, which experienced a slight increase.
- For transactions in USD: The average inter-bank interest rates had slight increases for most terms as compared to the previous week.
The specific average inter-bank interest rates were as follows:
Unit: % p.a
Overnight |
1-week |
2-week |
1-month |
3-month |
6-month |
9-month |
|
VND |
|||||||
Week 23/3-27/3 |
1.92 |
2.18 |
2.29 |
2.83 |
3.27 |
4.11 |
3.41 |
Week 16/3-20/3 |
2.04 |
2.31 |
2.41 |
2.78 |
3.29 |
4.02 |
5.53 |
Up/Down |
-0.12 |
-0.13 |
-0.12 |
0.05 |
-0.02 |
0.09 |
-2.12 |
USD |
|||||||
Week 23/3-27/3 |
0.96 |
1.19 |
1.41 |
1.95 |
2.19 |
2.61 |
0.00 |
Week 16/3-20/3 |
0.88 |
0.87 |
0.92 |
1.27 |
1.55 |
1.84 |
2.21 |
Up/Down |
0.08 |
0.32 |
0.49 |
0.68 |
0.64 |
0.77 |
- |
Translated by VA