Weekly Bulletin on Banking Operations (December 3 - 7, 2018)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were up and down by 10 – 20 VND per USD. On the first three days of the week, the exchange rate was quoted at VND 23,260/23,350 against the USD, then it increased to VND 23,280/23,370 against the USD in the next day, and was down to VND 23,270/23,360 against the USD on the last day of the week (down by VND 05 per USD for both buying and selling rates as compared to the last day of the previous week the November 30).
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 loans 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 244,065 billion, an average of VND 48,813 billion/day, a decrease of VND 31,967 billion/day as compared to the week of November 26-30, 2018; meanwhile the transaction amount in USD was equivalent to VND 109,648 billion, an average of VND 21,930 billion/day, a decrease of VND 134 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms (accounting for 64% and 20% of the total amount of VND transactions respectively). The transactions in USD were mostly for overnight and 1-week terms, accounting for 67% and 17% 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 upward trend for below 1-month terms. Specifically, the inter-bank interest rates for overnight and 1-week and 1-month terms were up by 0.11 percentage points, 0.08 and 0.03 percentage point to 4.81% p.a, 4.83% and 5.09 p.a respectively.
- For transactions in USD: The average inter-bank interest rates were stable. The average inter-bank interest rates for short terms fluctuated slightly around those average rates of the previous week. Specifically, the inter-bank interest rates for overnight reduce by 0.01 percentage points p.a to 2.29% p.a; The rates for 1-week and 1-month terms increased by 0.02 percentage points p.a and 0.06 percentage points p.a to 2.37% p.a and 2.68% 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 |
4.81 |
4.83 |
4.88 |
5.09 |
5.45 |
5.72 |
- |
USD |
2.29 |
2.37 |
2.43 |
2.68 |
2.87 |
3.56 |
4.01 |
Translated by MH