Developments in Money Market and Inter-bank Market (December 27 - 31, 2021)
1. Forex market and exchange rates:
During the week of December 27 - 31, 2021, the USD/VND exchange rates and the forex market were relatively stable and the market liquidity was ensured for smooth operations. On December 27, 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 22,650/22,930 per USD, down by 80 VND per USD as compared with the rates of the last working day of the previous week (December 24, 2021). By end of December 31, the exchange rates were quoted at VND 22,640/22,920 per USD, down by 10 VND per USD as compared with the rates of December 27, 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 813,543 billion, an average of VND 162,709 billion per day, a decrease of VND 7,176 billion per day as compared to the previous week (December 20 - 24, 2021); meanwhile the transaction amount in USD was equivalent to VND 158,774 billion, an average of VND 31,755 billion per day, a decrease of VND 817 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 59% and 32% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 54% and 35% of the total amount of USD transactions respectively.
2.2. Inter-bank interest rates:
- For transactions in VND: The key average inter-bank interest rates experienced opposite movements as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight and 1-month terms decreased by 0.22 percentage points and 0.26 percentage points respectively, to 0.92% p.a. and 1.88% p.a. respectively. Meanwhile, the average inter-bank interest rate for 1-week term increased by 0.41 percentage points, to 1.84% p.a.
- For transactions in USD: The average inter-bank interest rates experienced slight fluctuations as compared to those of the previous week. Specifically, the average inter-bank interest rate for overnight term was unchanged as compared to that of the previous week, standing at 0.11% p.a. The average inter-bank interest rate for 1-week term decreased slightly by 0.03 percentage points to 0.14% p.a.; meanwhile the average inter-bank interest rate for 1-month term increased by 0.06 percentage points, to 0.29% 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 |
0.92 |
1.84 |
1.94 |
1.88 |
2.89 |
3.29 |
3.48 |
USD |
0.11 |
0.14 |
0.20 |
0.29 |
0.88 |
1.28 |
- |
Translated by LK.