Weekly Bulletin on Banking Operations (September 10-14, 2018)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were on a downward trend, from 23,260/23,340 VND to 23,245/23,325 VND against the USD on the first day of the week, then down gradually on three following days to 23,225/23,305 against the USD, and to 23,210/23,290 against the USD on the final day of the week (down by 50 VND/USD for buying and selling rates 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 155,399 billion, an average of VND 31,080 billion/day, a decrease of VND 1,827 billion/day as compared to the week of September 4-7, 2018; meanwhile the transaction amount in USD was equivalent to VND 97,803 billion, an average of VND 19,561 billion/day, a decrease of VND 514 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms (accounting for 55% and 33% of the total amount of VND transactions respectively). The transactions in USD were mostly for overnight and 1-week terms, accounting for 63% and 25% 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 0.58, 0.51 and 0.26 percentage points to 3.89% p.a and 4.09% p.a, and 4.41% p.a respectively.
- For transactions in USD: the average inter-bank interest rates were on a slight upward trend. Specifically, the inter-bank interest rates for overnight and 1 month terms increased by 0.01 percentage point to 1.99% p.a and 2.28% p.a respectively, while the inter-bank interest rate for 1-week term was unchanged at 2.11% 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 |
3.89 |
4.09 |
4.22 |
4.41 |
4.69 |
5.33 |
- |
USD |
2.00 |
2.11 |
2.17 |
2.28 |
2.67 |
3.03 |
3.08 |
Translated by Le Hang