Weekly information on banking operations (May 21-25, 2018)
1. Forex market:
The buying and selling VND/USD exchange rates quoted by commercial banks were down on the first days of the week, then up on the following days. By May 25, 2018, the exchange rate was 22,755/22,825 VND/USD (up by 10 VND/USD in comparison with the final day of the previous week).
The State Bank of Vietnam (SBV) will continue to conduct synchronous measures and monetary policy to stabilize the forex market and exchange rate within the set band.
2. Mobilizing and lending rates:
2.1. Mobilizing rates:
- VND mobilizing rates: The rates were commonly 0.6 – 1% p.a for demand and below 1-month terms, 4.3 – 5.5% p.a for 1 month to below 6 month terms, 5.3 – 6.5% p.a for 6 to below 12 month terms; and 6.5 – 7.3% p.a for 12 month plus term.
- USD mobilizing rates: The USD mobilizing rates were commonly 0% p.a for individuals and economic institutions.
2.2. Lending rates:
- VND lending rates: Currently, the average rates were commonly 6.0 – 9.0% p.a for short-term loans; 9.0 – 11.0% p.a for medium and long-term loans.
- USD lending rates were commonly 2.8% – 6.0% p.a. The rates were 2.8 – 4.7% p.a for short-term and 4.5 – 6.0% p.a for medium- and long-term loans.
3. Inter-bank transaction turnover:
3.1. Transactions:
According to reports from credit institutions and foreign bank branches, the total amount of transactions in the inter-bank market reached about VND 170,563 billion, an average of VND 34,113 billion/day, an increase of VND 1,356 billion/day compared with the week of May 14-18, 2018; while the USD amount was equivalent to VND 79,156 billion, an average of VND 15,831 billion/day, a decrease of VND 1,798 billion/day compared to the previous week.
Most VND transactions were overnight and 1-week terms (accounting for 44% and 28% of the total amount of VND transactions respectively). Transactions in USD were mostly overnight and 1-week terms, accounting for 55% and 29% of the total amount of USD transactions respectively.
3.2. The average inter-bank interest rates:
- For VND transactions: As compared to the previous week, the average inter-bank interest rates were on an upward trend. Specifically, the inter-bank interest rates for overnight, 1 week and 1 month terms were up by 0.32, 0.33 and 0.40 percentage point p.a to 1.5% p.a, 1.61% p.a and 2.21% p.a respectively.
- For USD transactions: The average inter-bank interest rates for below 1 month terms were on a downward trend as compared to the previous week. Specifically, the inter-bank interest rates for overnight, 1 week and 1 month terms were down by 0.01, 0.04 and 0.2 percentage point p.a to 1.75% p.a, 1.80% p.a, 2.0% p.a respectively.
The specific average inter-bank interest rates were as follows:
Term |
Over night |
1 week |
2 weeks |
1 month |
3 months |
6 months |
9 months |
VND |
1.50 |
1.61 |
1.73 |
2.21 |
3.10 |
4.84 |
2.55 |
USD |
1.75 |
1.80 |
1.91 |
2.00 |
2.55 |
3.42 |
3.93 |
Translated by Le Hang