Weekly Bulletin on Banking Operations (February 3 – 7, 2020)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were on a slight downward trend during the first three days of the week, from VND 23,200/23,340 to VND 23,160/23,300 against the USD; and continued to be quoted at these exchange rates on the next day. The exchange rates slightly increased and were finally quoted at VND 23,170/23,310 against the USD on the last day of the week (up by VND 5 per USD for both buying and selling rates as compared to the last day of the previous week (January 31, 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 321,856 billion, an average of VND 64,371 billion per day, an increase of VND 33,979 billion per day as compared to the previous week (January 30-31, 2020); meanwhile the transaction amount in USD was equivalent to VND 144,629 billion, an average of VND 28,926 billion per day, an increase of VND 15,766 billion per day as compared to the previous week (January 30-31, 2020).
Most VND transactions were for overnight term and 1-week term, accounting for 69% 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 70% and 17% 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 short terms decreased, except for 1-month term. Specifically, the average inter-bank interest rates for overnight term and 1-week term were down by 0.2 percentage points p.a and 0.22 percentage points p.a to 2.81% p.a and 3% p.a respectively. The average inter-bank interest rate for 1-month term increased by 0.03 percentage points p.a from 3.52% p.a to 3.55% p.a.
- For transactions in USD: The average inter-bank interest rates slightly fluctuated for most terms as compared to previous week. Specifically, the average inter-bank interest rates for overnight term, 1-week and 1-month terms were 1.63% p.a, 1.69% p.a and 1.92% 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 |
2.81 |
3.00 |
2.98 |
3.55 |
4.22 |
4.84 |
5.62 |
USD |
1.63 |
1.69 |
1.71 |
1.92 |
1.91 |
2.48 |
- |
Translated by Le Hang