Weekly Bulletin on Banking Operations (July 01-05, 2019)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were decreasing from VND 23,210/23,330 against the USD to VND 23,180/23,300 against the USD in the first two days of the week. Then, the exchange rates slightly went up to VND 23,185/23,305 against the USD and quoted at VND 23,190/23,310 against the USD in the last two days of the week (down by 70 VND/USD for both buying and selling exchange 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 0.5% 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 305,217 billion, an average of VND 61,043 billion/day, a decrease of VND 19,752 billion/day as compared to the week of June 24-28, 2019; meanwhile the transaction amount in USD was equivalent to VND 119,049 billion, an average of VND 23,810 billion/day, a decrease of VND 9,337 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms, accounting for 73% and 16% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight and 1-week terms, accounting for 65% and 24% 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, the average inter-bank interest rates were on a downward trend for most terms. Specifically, the inter-bank interest rates for overnight, 1-week and 1-month terms were down by 0.12 percentage points p.a, 0.10 percentage points p.a and 0.10 percentage points p.a to 3.68% p.a, 3.69% p.a and 3.83% p.a respectively.
- For transactions in USD: The average inter-bank interest rates slightly increased for most terms as compared to the previous week. Specifically, the inter-bank interest rates for overnight, 1-week and 1-month terms were up by 0.03 percentage points p.a, 0.06 percentage points p.a and 0.03 percentage points p.a to 2.44% p.a, 2.53% p.a and 2.66% 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 |
3.68 |
3.69 |
3.76 |
3.83 |
4.46 |
5.22 |
5.21 |
USD |
2.44 |
2.53 |
2.61 |
2.66 |
2.63 |
3.09 |
- |
Translated by VA