Weekly Bulletin on Banking Operations (September 4-7, 2018)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were slightly up from 23,270/23,350 VND to 23,275/23,355 VND against the USD on the first two days of the week, then down gradually on the following days to 23,260/23,340against 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 131,625 billion, an average of VND 32,906 billion/day, a decrease of VND 4,376 billion/day as compared to the week of August 27-31, 2018; meanwhile the transaction amount in USD was equivalent to VND 80,299 billion, an average of VND 20,075 billion/day, an increase of VND 191 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms (accounting for 47% and 29% of the total amount of VND transactions respectively). The transactions in USD were mostly for overnight and 1-week terms, accounting for 68% and 23% 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 slight upward trend. Specifically, the inter-bank interest rates for overnight and 1-week terms were up by 0.08 percentage points to 4.47% p.a and 4.60% p.a, and 4.57% p.a respectively, while the inter-bank interest rate for 1 month term decreased by 0.02 percentage point p.a to 4.67% p.a
- For transactions in USD: the average inter-bank interest rates fluctuated. Specifically, the inter-bank interest rates for overnight slightly decreased by 0.02 percentage points to 1.99% p.a, while the inter-bank interest rates for 1-week and 1-month terms increased by 0.02 percentage points and 0.03percentage points p.a to 2.11% p.a and 2.27% 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 |
4.47 |
4.60 |
4.64 |
4.67 |
4.72 |
5.32 |
- |
USD |
1.99 |
2.11 |
2.15 |
2.27 |
2.57 |
3.27 |
- |
Translated by Le Hang