Weekly Bulletin on Banking Operations (November 5-9, 2018)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were up slightly from VND 23,275/23,365 against the USD on the first two days of the week to VND 23,280/23,370 against the USD by midweek, then down to VND 23,245/23,335 against the USD on the last day of the week (down by VND 45 per USD for both buying and selling rates as compared to the last day 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 0.6% p.a – 1% p.a for demand and below 1-month term deposits, 4.3% p.a – 5.5% p.a for 1-month to below 6-month terms, 5.3% 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 – 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 and 4.5 – 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 169,075 billion, an average of VND 33,815 billion/day, a decrease of VND 12,452 billion/day as compared to the week of October 29- November 2, 2018; meanwhile the transaction amount in USD was equivalent to VND 114,583 billion, an average of VND 22,917 billion/day, a decrease of VND 111 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms (accounting for 54% and 28% of the total amount of VND transactions respectively). The transactions in USD were mostly for overnight and 1-week terms, accounting for 55% and 32% 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, most average inter-bank interest rates were on an upward trend. Specifically, the inter-bank interest rates for overnight and 1-week terms were down by 0.02 percentage points and 0.04 percentage points to 4.76% p.a and 4.71% p.a respectively; the inter-bank interest rate for 1-month term was up by 0.24 percentage point p.a to 5.04% p.a.
- For transactions in USD: the average inter-bank interest rates fluctuated. Specifically, the inter-bank interest rates for overnight, 1-month terms increased by 0.01 percentage points p.a and 0.11 percentage points p.a to 2.25% p.a and 2.62% respectively; meanwhile, the average inter-bank interest rate for 1-week term decreased by 0.02 percentage points to 2.28% p.a.
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 |
4.76 |
4.71 |
4.88 |
5.04 |
4.92 |
5.86 |
5.27 |
USD |
2.25 |
2.28 |
2.32 |
2.62 |
2.82 |
3.50 |
- |
Translated by Le Hang