Weekly Bulletin on Banking Operations (March 30- April 3, 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) were on a downward trend. During the first two days of the week, the buying and selling exchange rates slightly decreased from VND 23,560/23,720 per USD to VND 23,500/23,660 per USD; then made a slight increase by VND 50/60 per USD per day during the middle of the week, and then turned downward by VND 80-120 per USD on the next two days to VND 23,350/23,530 against the USD on Friday (April 3), down by VND 170/210 per USD as compared to the last day of the previous week (March 27, 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 272,282 billion, an average of VND 54,456 billion per day, a decrease of VND 16,484 billion per day as compared to the previous week (March 23-27, 2020); meanwhile the transaction amount in USD was equivalent to VND 117,557 billion, an average of VND 23.511 billion per day, a decrease of VND 4,644 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 76% and 8% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 79% and 4% of the total amount of USD transactions respectively.
3.2. Average inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates increased for most terms as compared to the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were up by 0.84 percentage points p.a, 0.81 percentage points p.a and 0.33 percentage points p.a to 2.76% p.a, 2.99% p.a and 3.16% p.a respectively.
- For transactions in USD: The average inter-bank interest rates were on an upward trend for below 1-month terms and on a downward trend for above 1-month terms as compared to the previous week. Specifically, the average inter-bank interest rates for overnight and 1-week terms increased by 0.42 percentage points p.a and 0.36 percentage points p.a to 1.38% p.a and 1.55% p.a respectively; meanwhile the average inter-bank interest rate for 1-month term decreased by 0.15 percentage points p.a to 1.8% p.a.
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 |
2.76 |
2.99 |
2.92 |
3.16 |
3.48 |
4.27 |
- |
USD |
1.38 |
1.55 |
1.59 |
1.80 |
2.19 |
1.79 |
2.30 |
Translated by Le Hang