Weekly Bulletin on Banking Operations (January 28 – February 1, 2019)
1.Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were stable at VND 23,150/23,240 against the USD in first three days of the week, then increased to VND 23,160/23,250 against the USD on January 31 and reduced to the same rate quoted on the first day of the week. The both buying and selling exchange rates were down by 05 VND/USD as compared to the last day of the previous week, the January 25, 2019.
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 0.5% p.a – 1% p.a for demand and below 1-month term deposits, 4.5% p.a – 5.5% p.a for 1-month to below 6-month terms, 5.5% p.a – 6.5% p.a for 6-month to below 12-month terms; and 6.6% – 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 loans 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 254,586 billion, an average of VND 50,917 billion/day, an increase of VND 4,433 billion/day as compared to the week of January 21-25, 2019; meanwhile the transaction amount in USD was equivalent to VND 130,539 billion, an average of VND 26,108 billion/day, an increase of VND 3,300 billion/day as compared to the previous week.
Most VND transactions were for overnight and 2-week terms (accounting for 51% and 32% of the total amount of VND transactions respectively). The transactions in USD were mostly for overnight and 2-week terms, accounting for 66% and 21% 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 were on a upward trend for most terms. Specifically, the inter-bank interest rates for overnight, 1-week and 1-month terms were up by 0.29 percentage points p.a, 0.14 percentage points p.a and 0.09 percentage points p.a to 5.12% p.a, 4.99% p.a and 5.3% p.a respectively.
- For transactions in USD: The average inter-bank interest rates were relatively stable and remained at the rates of previous week. Specifically, the inter-bank interest rates for overnight, 1-week and 1 - month terms were 2.49% p.a, 2.48% p.a and 2.73% p.a respectively.
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 |
5.12 |
4.99 |
5.08 |
5.30 |
5.47 |
6.19 |
5.26 |
USD |
2.49 |
2.48 |
2.58 |
2.73 |
3.16 |
3.72 |
- |
Translated by Mai Huong