Developments in Money Market and Inter-bank Market (June 7 - 11, 2021)
1. Forex market and exchange rates:
During June 7 - 11, 2021, the exchange rates and the forex market were relatively stable, and the market liquidity was ensured for smooth operations. By end of June 7, the buying and selling exchange rates quoted on the website of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) were at VND 22,870/23,070 per USD, down by 80 VND per USD for both buying and selling exchange rates as compared to those of the last working day of the previous week (June 4, 2021) (the buying exchange rates quoted by the State Bank of Vietnam decreased from VND 23,125 per USD to VND 22,975 per USD on June 7, 2021). By end of June 11, the buying/selling exchanged rates were quoted at VND 22,850/23,050 per USD, down by 20 VND per USD as compared to the rates of June 7, 2021.
2. Inter-bank transaction operations:
2.1. 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 694,551 billion, an average of VND 138,910 billion per day, an increase of VND 22,686 billion per day as compared to the previous week (May 30 – June 4, 2021); meanwhile the transaction amount in USD was equivalent to VND 170,770 billion, an average of VND 34,154 billion per day, an increase of VND 4,593 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 79% and 12% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 72% and 17% of the total amount of USD transactions respectively.
2.2. Inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates decreased for most terms. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were down by 0.39 percentage points, 0.26 percentage points and 0.15 percentage points, to 1.06% p.a, 1.29% p.a and 1.66% p.a respectively.
- For transactions in USD: The average inter-bank interest rates were relatively stable, with slight fluctuations around the rates of the previous week. Specifically, the average inter-bank interest rates for overnight and 1-month terms slightly increased by 0.01 percentage point and 0.03 percentage points to 0.11% p.a and 0.22% p.a respectively; while the average inter-bank interest rate for 1-week term was down by 0.02 percentage points to 0.1% p.a.
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 |
1.06 |
1.29 |
1.41 |
1.66 |
1.80 |
2.64 |
3.11 |
USD |
0.11 |
0.10 |
0.13 |
0.22 |
0.36 |
0.92 |
0.97 |
Translated by VA