Weekly Bulletin on Banking Operations (September 17-21, 2018)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were on an upward trend, from 23,245/23,325 VND to 23,260/23,340 VND against the USD on the first two day of the week, then to 23,280/23,360 against the USD on the last two days of the week (up by 70 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 187,873 billion, an average of VND 37,575 billion/day, an increase of VND 11,250 billion/day as compared to the week of September 10-14, 2018; meanwhile the transaction amount in USD was equivalent to VND 107,192 billion, an average of VND 21,438 billion/day, an increase of VND 5,379 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms (accounting for 50% and 28% of the total amount of VND transactions respectively). The transactions in USD were mostly for overnight and 1-week terms, accounting for 61% and 20% 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 1.98, 1.87 and 1.17 percentage points to 2.49% p.a and 2.73% p.a, and 3.5% 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 week terms increased by 0.02 percentage points to 2.01% p.a and 2.13% p.a respectively. The inter-bank interest rate for 1-month term increased by 0.05 percentage points to 2.32% 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 |
2.49 |
2.73 |
2.96 |
3.50 |
4.34 |
4.78 |
- |
USD |
2.01 |
2.13 |
2.21 |
2.32 |
2.60 |
3.47 |
- |
Translated by Le Hang