Weekly Bulletin on Banking Operations (June 22-26, 2020)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites (at the end of the days) fluctuated between VND 23,115/23,295 and 23,130/23,310 per USD. At the beginning of the week, the rates were quoted at VND 23,130/23,310 per USD, then fluctuated between VND 23,115/23,295 and VND 23,130/23,310 per USD on the following days, and were finally quoted at VND 23,120/23,300 per USD on Friday (26/6), down by VND 10 per USD for both buying and selling rates as compared to the last day of the previous week (June 19, 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 – 0.2% p.a for demand and below 1-month term deposits, 4.0% p.a – 4.25% p.a for 1-month to below 6-month terms, 4.9% 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% 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 cap for VND lending rate for short-term loans of 5.0% p.a was applied to a number of priority sectors and fields.
- 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 – 4.5% p.a for short-term loans, and 4.2% 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 328,349 billion, an average of VND 65,670 billion per day, an increase of VND 9,783 billion per day as compared to the previous week (June 15-19, 2020); meanwhile the transaction amount in USD was equivalent to VND 125,346 billion, an average of VND 25,069 billion per day, a decrease of VND 707 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 61% and 18% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 70% and 15% 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 decreased slightly 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 0.14% p.a, 0.27% p.a and 0.86% p.a respectively.
- For transactions in USD: The average inter-bank interest rates fluctuated slightly 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 0.11% p.a, 0.14% p.a and 0.51% p.a respectively.
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 |
0.14 |
0.27 |
0.36 |
0.86 |
2.48 |
3.75 |
4.07 |
USD |
0.11 |
0.14 |
0.17 |
0.51 |
0.59 |
1.63 |
1.44 |
Translated by Le Hang