Weekly Bulletin on Banking Operations (October 29 – November 02, 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 23,300/23,390 against the USD for the first 3 days of the trading week, then slightly decreased to VND 23,290/23,380 against the USD for the last 2 days of the trading week (a decrease of 10 VND/USD in both buying and selling as compared to the last day of the previous week – October 26, 2018).
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% p.a – 1% p.a for demand and below 1-month term deposits, 4.3% p.a – 5.5% p.a for 1-month to below 6-month terms, 5.3% p.a – 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% p.a – 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% p.a – 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 231,334 billion, an average of VND 46,267 billion/day, an increase of VND 19,235 billion/day as compared to the week of October 22-26, 2018; meanwhile the transaction amount in USD was equivalent to VND 115,137 billion, an average of VND 23,027 billion/day, an increase of VND 1,518 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms (accounting for 48% and 24% of the total amount of VND transactions respectively). The transactions in USD were mostly for overnight and 1-week terms, accounting for 68% and 21% 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 0.71 percentage points, 0.71 percentage points and 0.24 percentage points, to 4.78% p.a, 4.75% p.a and 4.80% p.a respectively.
- For transactions in USD: the average inter-bank interest rates fluctuated. Specifically, the inter-bank interest rates for overnight, 1-week terms slightly increased by 0.03 percentage points to 2.24% p.a and 2.30% respectively; meanwhile, the average inter-bank interest rates for 1-month term decreased by 0.04 percentage point to 2.51% 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 |
4.78 |
4.75 |
4.76 |
4.80 |
4.90 |
5.93 |
- |
USD |
2.24 |
2.30 |
2.37 |
2.51 |
2.69 |
2.83 |
3.97 |
Translated by VA