Developments in Money Market and Inter-bank Market (February 21 - 25, 2022)
1. Forex market and exchange rates:
During the week of February 21 - 25, 2022, the forex market and the USD/VND exchange rates were relatively stable, the market liquidity was ensured for smooth operations. On February 21, 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 50 VND per USD as compared with the rates of the last working day of the previous week (February 18, 2022). By end of February 25, the exchange rates were quoted at VND 22,680/22,960 per USD, up by 30 VND per USD as compared with the rates of February 21, 2022.
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 1,063,256 billion, an average of VND 212,651 billion per day, an increase of VND 35,313 billion per day as compared to the previous week (February 14 - 18, 2022); meanwhile the transaction amount in USD was equivalent to VND 216,363 billion, an average of VND 43,273 billion per day, an increase of VND 5,278 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 85% and 7% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 75% and 14% of the total amount of USD transactions respectively.
2.2. Inter-bank interest rates:
- For transactions in VND: The 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-week terms decreased by 0.27 percentage points and 0.22 percentage points respectively. In opposite, the average inter-bank interest rate for 1-month term increased by 0.04 percentage points to 2.79% p.a.
- For transactions in USD: The average inter-bank interest rates experienced an upward trend in almost all of the terms as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight term increased by 0.01 percentage point to 0.11% p.a. Similarly, the average inter-bank interest rates for 1-week and 1-month terms increased by 0.03 percentage points and 0.07 percentage points 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 |
2.54 |
2.59 |
2.60 |
2.79 |
3.06 |
3.82 |
3.97 |
USD |
0.11 |
0.16 |
0.23 |
0.37 |
0.60 |
1.26 |
1.71 |
Translated by LK.