Developments in Money Market and Inter-bank Market (August 14-18, 2023)
1. Forex market and exchange rates:
During the week of August 14-18, 2023, the exchange rates were relatively stable, with fluctuations toward both directions. On August 14, 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 23,650/23,990 per USD, up by 80 VND per USD as compared with the rates of the last working day of the previous week (August 11, 2023). By end of August 18, the exchange rates were quoted at VND 23,630/23,970 per USD, down by 20 VND per USD as compared with the rates of August 14, 2023.
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 1,037,247 billion, an average of VND 207,449 billion per day, a decrease of VND 16,053 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 301,448 billion, an average of VND 60,290 billion per day, a decrease of VND 816 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 86% 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 78% and 18% 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. Specifically, the average inter-bank interest rates for overnight term remained at 0.2% p.a.; meanwhile, the average inter-bank interest rates for 1-week and 1-month terms decreased by 0.01 percentage point p.a. and 0.26 percentage points p.a. respectively, to 0.4% p.a. and 1.51% p.a. respectively;
- For transactions in USD: The average inter-bank interest rates were relatively stable, with slight fluctuations around the interest rates of the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were at 5.04% p.a., 5.06% p.a., and 5.31% 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 |
0.20 |
0.40 |
0.59 |
1.51 |
3.79 |
6.87 |
7.35 |
USD |
5.04 |
5.06 |
5.12 |
5.31 |
5.48 |
6.00 |
6.07 |
Translated by Le Hang.