Developments in Money Market and Inter-bank Market (February 28 - March 04, 2022)
1. Forex market and exchange rates:
During the week of February 28 – March 04, 2022, the forex market was relatively stable, the USD/VND exchange rates experienced a slight upward trend, and the market liquidity was ensured for smooth operations. On February 28, 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 22,670/22,950 per USD, down by 10 VND per USD as compared with the rates of the last working day of the previous week (February 25, 2022). By end of March 04, the exchange rates were quoted at VND 22,700/22,980 per USD, up by 30 VND per USD as compared with the rates of February 28, 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 1,059,142 billion, an average of VND 211,828 billion per day, a decrease of VND 1,247 billion per day as compared to the previous week (February 21 - 25, 2022); meanwhile the transaction amount in USD was equivalent to VND 183,310 billion, an average of VND 36,662 billion per day, a decrease of VND 6,665 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 88% and 6% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 77% and 12% 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 a downward trend in almost all of the terms as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms decreased by 0.01 percentage point, 0.08 percentage points and 0.13 percentage points respectively, to 2.53% p.a., 2.51% p.a. and 2.66% p.a. respectively.
- For transactions in USD: The average inter-bank interest rates experienced little changes as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight term increased slightly by 0.02 percentage points to 0.13% p.a. Meanwhile, the average inter-bank interest rates for 1-week and 1-month terms remained at 0.16% p.a. and 0.37% 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 |
2.53 |
2.51 |
2.65 |
2.66 |
3.19 |
3.43 |
3.44 |
USD |
0.13 |
0.16 |
0.28 |
0.37 |
0.65 |
1.68 |
2.00 |
Translated by LK.