Weekly Bulletin on Banking Operations (June 18-22, 2018)
1. Forex market and exchange rates:
The US dollar buying and selling rates quoted on the commercial banks’ websites were on an upward trend. By June 22, 2018, the exchange rates were 22,830/22,900 VND for the USD (up by 45 VND/USD as compared to the last day of the previous week).
The State Bank of Vietnam (SBV) continued to conduct synchronous measures and manage the monetary policy to stabilize the forex market and the exchange rates within the set band.
2. Mobilization and lending interest rates:
2.1. Mobilization interest rates:
- Mobilization interest rates in VND: The common rates were between 0.6 – 1% p.a for demand and below 1-month term deposits, 4.3 – 5.5% p.a for 1-month to below 6-month terms, 5.3 – 6.5% p.a for 6-month to below 12-month terms; and 6.5 – 7.3% p.a for 12-month plus terms.
- Mobilization interest rates: The common mobilization interest rates in USD were 0% p.a for both individuals and institutions.
2. 2.2. Lending rates:
- Lending interest rates in VND: The common average rates were between 6.0 – 9.0% p.a for short-term loans; 9.0 – 11.0% p.a for medium and long-term loans.
- Lending interest rates in USD: The common rates were between 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 operations:
3.1. 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 about VND 167,311 billion, an average of VND 33,462 billion/day, an increase of VND 3,204 /day compared to the week June 11-15, 2018; while the USD amount was equivalent to VND 101,257 billion, an average of VND 20,251 billion/day, an increase of VND 1,809 billion/day compared to the previous week.
Most VND transactions were for overnight and 1-week terms (accounting for 42% and 26% of the total amount of VND transactions respectively). The transactions in USD were mostly for overnight and 1-week terms, accounting for 65% and 15% of the total amount of USD transactions respectively.
3.2. The average inter-bank interest rates:
- For transactions in VND: As compared to the previous week, most average inter-bank interest rates were on a downward trend. Specifically, the inter-bank interest rates for overnight, 1-week and 1-month terms were down by 0.52 percentage point, 0.41 percentage point and 0.35 percentage point to 0.81% p.a, 1.03% p.a, and 1.66% p.a respectively.
- For transactions in USD:, the average inter-bank interest rates for most key terms were on an upward trend as compared to the previous week. Specifically, the inter-bank interest rate for overnight, 1-week and 1-month terms increased by 0.12 percentage point, 0.09 percentage point and 0.03 percentage point p.a to 1.94% p.a; 2.01% p.a and 2.17% p.a respectively.
The specific average inter-bank interest rates were as follows:
Term |
Overnight |
1-week |
2-week |
1-month |
3-month |
6-month |
9-month |
VND |
0.81 |
1.03 |
1.12 |
1.66 |
2.64 |
2.61 |
4.10 |
USD |
1.94 |
2.01 |
2.07 |
2.17 |
2.49 |
3.08 |
3.90 |
Translated by Le Hang