Developments in Money Market and Inter-bank Market (September 25-29, 2023)
1. Forex market and exchange rates:
During the week of September 25-29, 2023, the foreign exchange rates experienced slight fluctuations and decreased considerably on Friday; the liquidity was ensured for smooth operations; and the legitimate demands for foreign currencies were fully met. On September 25, 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 24,195/24,535 per USD, up by 5 VND per USD as compared with the rates of the last working day of the previous week (September 22, 2023). By end of September 29, the exchange rates were quoted at VND 24,120/24,460 per USD, down by 75 VND per USD as compared with the rates of September 25, 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 1,291,758 billion, an average of VND 258,352 billion per day, an increase of VND 35,403 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 335,992 billion, an average of VND 67,198 billion per day, an increase of VND 7,612 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 77% and 17% of the total amount of USD transactions respectively.
2.2. Inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates increased in most of the terms 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 increased by 0.02 percentage points p.a., 0.02 percentage points p.a., and 0.16 percentage points p.a. respectively, to 0.17% p.a., 0.36% p.a., and 1.3% p.a. respectively.
- For transactions in USD: The average inter-bank interest rates were relatively stable, with slight fluctuations around the rates of the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were unchanged at 5.03% p.a., 5.07% p.a., and 5.32% 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 |
0.17 |
0.36 |
0.55 |
1.30 |
3.29 |
5.47 |
6.69 |
USD |
5.03 |
5.07 |
5.18 |
5.32 |
5.98 |
5.91 |
6.25 |
Translated by Le Hang.