Weekly Bulletin on Banking Operations (December 28-31, 2020)
1. Forex market and exchange rates:
Between December 28-29, 2020, the buying and selling exchange rates quoted on the website of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) were stable at VND 23,040/23,220 per USD, unchanged as compared to the exchange rates of the last working day of the previous week (December 25, 2020). On December 30, 2020, the buying and selling exchange rates both went down by VND 30 to VND 23,010/23,190 per USD. However, on the last working day of the week (December 31, 2020), the buying and selling exchange rates increased by VND 25 each to VND 23,035/23,215 per USD.
2. Mobilization and lending interest rates:
2.1. Mobilization interest rates:
- The mobilization interest rates in VND: The common rates were on a downward trend in comparison with those at the end of 2019, standing at 0.1% p.a – 0.2% p.a for demand and below 1-month term deposits, 3.2% p.a – 3.9% p.a for 1-month to below 6-month terms, 4.0% p.a – 6.0% p.a for 6-month to below 12-month terms, and 5.6% p.a – 6.8% 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 on a downward trend as compared to those at the end of 2019. The cap for VND lending rate for short-term loans of 4.5% p.a continued to be applied to a number of sectors and fields.
- 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 – 4.5% p.a for short-term loans, and 4.2% 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 419,659 billion, an average of VND 83,932 billion per day, a decrease of VND 15,633 billion per day as compared to the previous week (December 21-25, 2020); meanwhile the transaction amount in USD was equivalent to VND 125,901 billion, an average of VND 25,180 billion per day, an increase of VND 1,878 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 49% and 33% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 48% and 41% of the total amount of USD transactions respectively.
3.2. Average inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates slightly increased for most terms. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were 0.12% p.a, 0.29% p.a and 0.55% p.a respectively.
- For transactions in USD: The average inter-bank interest rates fluctuated slightly for all terms. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were 0.1% p.a, 0.13% p.a and 0.18% p.a respectively.
The specific average inter-bank interest rates were as follows:
Unit: % p.a
Overnight |
1-week |
2-week |
1-month |
3-month |
6-month |
9-month |
|
VND |
0.12 |
0.29 |
0.27 |
0.55 |
1.78 |
3.09 |
2.51 |
USD |
0.10 |
0.13 |
0.15 |
0.18 |
0.53 |
1.16 |
1.02 |
Translated by VA