Weekly Bulletin on Banking Operations (January 6 – 10, 2020)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were at VND 23,110/23,230 against the USD during the first day of the week, and slightly increased and were quoted at VND 23,115/23,235 against the USD within the next two days of the week; then decreased back to VND 23,110/23,230 against the USD on the last day of the week (unchanged as compared to the last day of the previous week (December 30, 2019 – January 3, 2020).
2. Mobilization and lending interest rates:
2.1. Mobilization interest rates:
- The mobilization interest rates in VND: The common rates were between 0.2% p.a – 0.8% p.a for demand and below 1-month term deposits, 4.3% p.a – 5.0% p.a for 1-month to below 6-month terms, 5.3% p.a – 7.0% p.a for 6-month to below 12-month terms, and 6.6% – 7.5% 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 269,224 billion, an average of VND 53,845 billion per day, an increase of VND 8,405 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 121,294 billion, an average of VND 24,259 billion per day, an increase of VND 8,336 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 75% and 17% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 74% and 18% 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 for overnight term and 1-week term decreased; while the average inter-bank interest rates for 1-month term increased. Specifically, the average inter-bank interest rates for overnight term, 1-week term and 1-month term are 1.12% p.a, 1.67% p.a and 3.92% p.a respectively.
- For transactions in USD: The average inter-bank interest rates slightly decreased for most terms as compared to previous week. Specifically, the average inter-bank interest rates for overnight term, 1-week and 1-month terms rose to 1.58% p.a, 1.67% p.a and 1.94% 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 |
1.12 |
1.67 |
2.39 |
3.92 |
3.99 |
5.35 |
5.92 |
USD |
1.58 |
1.67 |
1.78 |
1.94 |
2.11 |
2.95 |
- |
Translated by VA