Developments in Money Market and Inter-bank Market (September 19-23, 2022)
1. Forex market and exchange rates:
During the week of September 19-23, 2022, the forex market and the USD/VND exchange rates were relatively stable, with the exchange rates increasing slightly, and the market liquidity was ensured for smooth operations. On September 19, 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 23,530/ 23,810 per USD, up by 15 VND per USD as compared with the rates of the last working day of the previous week (September 16, 2022). By end of September 23, the exchange rates were quoted at VND 23,565/23,845 per USD, up by 35 VND per USD as compared with the rates of September 12, 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 1,258,928 billion, an average of VND 251,786 billion per day, a decrease of VND 13,738 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 262,379 billion, an average of VND 52,476 billion per day, an increase of VND 5,676 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 2-week term, accounting for 89% and 4% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 81% and 10% of the total amount of USD transactions respectively.
2.2. Inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates were on an upward trend in most of the terms. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were up by 0.48 percentage points p.a., 0.51 percentage points p.a., and 0.46 percentage points p.a. respectively, to 4.7% p.a., 4.96% p.a., and 5.5% p.a. respectively.
- For transactions in USD: The average inter-bank interest rates were also on an upward trend in most of the terms. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms increased by 0.31 percentage points p.a., 0.60 percentage points p.a., and 0.27 percentage points p.a., to 2.7% p.a., 3.16% p.a., and 3.4% 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 |
4.70 |
4.96 |
5.19 |
5.50 |
5.65 |
7.56 |
7.54 |
USD |
2.70 |
3.16 |
3.25 |
3.40 |
3.50 |
4.99 |
5.53 |
Translated by Le Hang