Weekly Bulletin on Banking Operations (November 12-16, 2018)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were up slightly from VND 23,255/23,345 against the USD on the first day of the week to VND 23,260/23,350 VND/USD against the USD by midweek, then up to VND 23,265/23,355 against the USD on the last two days of the week (up by VND 20 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 209,506 billion, an average of VND 41,901 billion/day, an increase of VND 8,086 billion/day as compared to the week of November 5-9, 2018; meanwhile the transaction amount in USD was equivalent to VND 112,609 billion, an average of VND 22,522 billion/day, a decrease of VND 395 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms (accounting for 53% and 28% of the total amount of VND transactions respectively). The transactions in USD were mostly for overnight and 1-week terms, accounting for 63% and 23% 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 fluctuated. Specifically, the inter-bank interest rates for overnight and 1-week terms were up by 0.03 percentage points and 0.05 percentage points to 4.79% p.a and 4.76% p.a respectively; the inter-bank interest rate for 1-month term was down by 0.02 percentage points p.a to 5.02% p.a.
- For transactions in USD: the average inter-bank interest rates for below 1-month terms were on an upward trend. Specifically, the inter-bank interest rates for 1-week and 1-month terms increased by 0.04 percentage points p.a and 0.11 percentage points p.a to 2.32% p.a and 2.73% respectively; meanwhile, the average inter-bank interest rate for overnight term remained at 2.25% 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 |
4.79 |
4.76 |
4.88 |
5.02 |
5.40 |
5.63 |
5.28 |
USD |
2.25 |
2.32 |
2.37 |
2.73 |
2.76 |
3.32 |
3.90 |
Translated by Le Hang