Weekly Bulletin on Banking Operations (August 27-31, 2018)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were 23,255/23,335 VND against the USD on the first three days of the week, then slightly up on the two following days to 23,260/23,340 VND against the USD (unchanged 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:
- 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 186,409 billion, an average of VND 37,282 billion/day, an increase of VND 9,698 billion/day as compared to the week of August 20 - 24, 2018; meanwhile the transaction amount in USD was equivalent to VND 99,419 billion, an average of VND 19,884 billion/day, an increase of VND 2,088 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms (accounting for 45% and 32% of the total amount of VND transactions respectively). The transactions in USD were mostly for overnight and 1-week terms, both accounting for 47% 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 and 1-week terms were down by 0.21 percentage points and 0.15 percentage points to 4.39% p.a and 4.52% p.a respectively; while the inter-bank interest rates for 1-month terms were up by 0.03 percentage points to 4.69% p.a.
- For transactions in USD: the average inter-bank interest rates for most key 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 slightly decreased by 0.02 percentage points, 0.06 percentage points and 0.12 percentage points to 2.01% p.a; 2.09% p.a and 2.24% 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 |
3.34 |
3.65 |
3.78 |
4.10 |
4.33 |
5.16 |
- |
USD |
2.07 |
2.20 |
2.21 |
2.46 |
2.60 |
3.21 |
- |
Translated by VA