Weekly Bulletin on Banking Operations (October 1-5, 2018)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites continued to be remained at VND 23,290/23,370 against the USD during the first two days of the week, then up slightly to VND 23,300/23,380 against the USD on the following day, and to VND 23,310/23,390 against the USD on the last two days of the week (up by VND 20 per USD for both 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. 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 146,330 billion, an average of VND 29,266 billion/day, a decrease of VND 13,223 billion/day as compared to the week of September 24-28, 2018; meanwhile the transaction amount in USD was equivalent to VND 92,669 billion, an average of VND 18,534 billion/day, a decrease of VND 5,192 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms (accounting for 59% and 32% of the total amount of VND transactions respectively). The transactions in USD were mostly for overnight and 1-week terms, accounting for 56% 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 an upward trend. Specifically, the inter-bank interest rates for overnight, 1-week and 1-month terms were up by 0.68 percentage points, 0.65 percentage points and 0.53 percentage points, to 3.16% p.a, 3.34% p.a and 4.03% 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, 1 week and 1-month terms increased by 0.11 percentage points, 0.04 percentage points and 0.03 percentage points, to 2.25% p.a, 2.32% and 2.39% 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 |
3.16 |
3.34 |
3.46 |
4.03 |
4.61 |
5.33 |
4.80 |
USD |
2.25 |
2.32 |
2.26 |
2.39 |
2.72 |
3.28 |
3.14 |
Translated by Le Hang