Weekly Bulletin on Banking Operations (July 30 - August 3, 2018)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were up from 23,220/23,300 VND to 23,245/23,325 VND against the USD on the first two days of the week, then down by 5 VND/USD on August 2, 2018, and back to an increase, quoted at 23,260/23,340 VND against the USD at the end of the week (up by 60 VND/USD for the buying and selling rate as compared to the last day of the previous week (August 27, 2018)).
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:
- The 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.
- The mobilization interest rates in USD: The common mobilization interest rate in USD was 0% p.a for both individuals’ and institutions’ deposits.
2. 2.2. Lending rates:
- The 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.
- The 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 approximately VND 157.822 billion, an average of VND 31.564 billion/day, an increase of VND 4.357 billion/day as compared to the week of July 23-27, 2018; meanwhile the transaction amount in USD was equivalent to VND 121.064 billion, an average of VND 24.213 billion/day, an increase of VND 4.902 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms (accounting for 44% and 29% of the total amount of VND transactions respectively). The transactions in USD were mostly for overnight and 1-week terms, accounting for 67% and 22% 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 remarkably downward trend. Specifically, the inter-bank interest rates for overnight, 1-week and 1-month terms were down by 2.06 percentage points, 1.69 percentage points and 1.00 percentage points p.a to 1.98% p.a, 2.31% p.a, and 3.57% p.a respectively.
- For transactions in USD: the average inter-bank interest rates for most key terms fluctuated as compared to the previous week. Specifically, the inter-bank interest rates for overnight, and 1-week terms increased by 0.06 percentage points and 0.07 percentage points to 2.04% p.a and 2.15% p.a. The inter-bank interest rate for 1 month term decreased by 0.04 percentage point to 2.35% p.a.
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 |
1.98 |
2.31 |
2.70 |
3.57 |
4.01 |
5.46 |
4.87 |
USD |
2.04 |
2.15 |
2.22 |
2.35 |
2.60 |
3.82 |
3.89 |
Translated by Le Hang