Weekly Bulletin on Banking Operations (December 24 - 28, 2018)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were 23.230/23.320 during the first two days of the week, and then decreased by 10 - 15 VND/USD per day to VND 23.155/23.245 against USD at the last day of the week. The both buying and selling rates were down by 85 VND/USD as compared to the last day of the previous week, the December 21.
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 0.5% p.a – 1% p.a for demand and below 1-month term deposits, 4.5% p.a – 5.5% p.a for 1-month to below 6-month terms, 5.5% p.a – 6.5% p.a for 6-month to below 12-month terms; and 6.6% – 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 298,858 billion, an average of VND 59,772 billion/day, an increase of VND 9,122 billion/day as compared to the week of December 17 - 21, 2018; meanwhile the transaction amount in USD was equivalent to VND 120,857 billion, an average of VND 24,171 billion/day, a decrease of VND 2,014 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms (accounting for 51% and 29% of the total amount of VND transactions respectively). The transactions in USD were mostly for overnight and 1-week terms, accounting for 50% and 35% 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, average inter-bank interest rates were on downward trend for most terms. Specifically, the inter-bank interest rates for overnight and 1-week and 1-month terms were down by 0.46 percentage point, 0.40 percentage point and 0.14 percentage point to 4.24% p.a, 4.36% p.a and 4.91% p.a respectively.
- For transactions in USD: The average inter-bank interest rates were on upward trend for short terms. Specifically, the inter-bank interest rates for overnight, 1-week and 1-month terms increased by 0.12 percentage point, 0.13 percentage point and 0.48 percentage point to 2.48% p.a, 2.59% p.a and 3.32% 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 |
4.24 |
4.36 |
4.70 |
4.91 |
5.64 |
6.01 |
- |
USD |
2.48 |
2.59 |
2.68 |
3.32 |
3.09 |
3.58 |
- |
Translated by MH