Developments in Money Market and Inter-bank Market (September 11-15, 2023)
1. Forex market and exchange rates:
During the week of September 11-15, 2023, the foreign exchange rates were on an upward trend; the liquidity was ensured for smooth operations; and the legitimate demands for foreign currencies were fully met. On September 11, 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 23,885/24,225 per USD, down by 35 VND per USD as compared with the rates of the last working day of the previous week (September 8, 2023). By end of September 15, the exchange rates were quoted at VND 24,085/24,425 per USD, up by 200 VND per USD as compared with the rates of September 15, 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 1,135,464 billion, an average of VND 227,093 billion per day, an increase of VND 3,847 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 311,722 billion, an average of VND 62,344 billion per day, a decrease of VND 6,005 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 85% and 5% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 69% and 23% 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 a downward trend as compared with the interest rates of the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms decreased slightly by 0.02 percentage points p.a., 0.07 percentage points p.a., and 0.29 percentage points p.a. respectively, to 0.16% p.a., 0.32% p.a., and 1.15% p.a. respectively.
- For transactions in USD: The average inter-bank interest rates increased slightly for most of the terms. Specifically, the average inter-bank interest rates for 1-week and 1-month terms increased by 0.02 percentage points p.a. and 0.04 percentage points p.a. respectively, to 5.05% p.a. and 5.34% p.a. respectively. Meanwhile, the average inter-bank interest rates for overnight term remained unchanged at 5.04% 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 |
0.16 |
0.32 |
0.47 |
1.15 |
3.69 |
6.47 |
7.06 |
USD |
5.04 |
5.05 |
5.16 |
5.34 |
5.67 |
6.16 |
6.03 |
Translated by Le Hang.