Developments in Money Market and Inter-bank Market (May 27-31, 2024)
1. Forex market and exchange rates:
During the week of May 27-31, 2024, the exchange rates were on a downward trend. On May 27, 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 25,281/25,481 per USD, an increase of 4 VND per USD as compared with the rates of the last working day of the previous week (May 24, 2024). By the end of May 31, 2024, the exchange rates were quoted at VND 24,254/25,474 VND per USD, down by 27/7 VND per USD as compared with the rates of May 27, 2024.
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 VND in the inter-bank market within the week reached approximately VND 1,926,945 billion, an average of VND 385,389 billion per day, an increase of VND 46,661 billion per day as compared to the previous week; meanwhile, the transaction amount in USD was equivalent to VND 325,775 billion, an average of VND 65,155 billion per day, a decrease of VND 4,155 billion per day as compared to the previous week.
With regard to the maturities, most of the transactions in VND were for overnight and 1-week terms, accounting for 87.78% and 7.46% of the total amount of VND transactions respectively. The transactions in USD were mainly for overnight and 1-week terms, accounting for 80.71% and 13.05% of the total amount of transactions respectively.
2.2. Inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates for overnight,1-week, 3-week, 6-month and 12 plus month terms decreased by 0.64 percentage points p.a., 0.33 percentage points p.a., 0.20 percentage points p.a., 0.05 percentage points p.a., and 0.09 percentage points p.a. respectively. The average inter-bank interest rates for 2-week, 1-month, 2-month, 3-month, and 12-month terms increased by 0.18 percentage points p.a., 0.20 percentage points p.a., 0.34 percentage points p.a., 0.32 percentage points p.a., and 0.19 percentage points p.a. respectively.
- For transactions in USD: The average inter-bank interest rates for the key terms experienced slight changes. Specifically, the average inter-bank interest rates for overnight and 2-week terms decreased by 0.01 percentage point p.a. (from 5.31% to 5.30%) and 0.02 percentage points p.a. (from 5.38% to 5.36%) respectively, while the average inter-bank interest rate for 1-week term increased by 0.02 percentage points p.a. (from 5.33% to 5.35%).
The specific average inter-bank interest rates were as follows:
Overnight |
1-week |
2-week |
1-month |
3-month |
6-month |
9-month |
|
VND |
3.93 |
4.39 |
4.79 |
4.95 |
5.44 |
4.93 |
- |
USD |
5.30 |
5.35 |
5.36 |
5.43 |
5.53 |
5.89 |
5.80 |
Translated by Le Hang