Weekly Bulletin on Banking Operations (July 8-12, 2019)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites decreased from VND 23,190/23,310 against the USD to VND 23,155/23,275 against the USD; then went up to VND 23,160/23,280 against the USD during the first three days of the week. After that, the exchange rates declined and were quoted at VND 23,140/23,260 against the USD in the last two days of the week (down by 50 VND per 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 288,307 billion, an average of VND 57,661 billion/day, a decrease of VND 3,382 billion/day as compared to the week of July 1-5, 2019; meanwhile the transaction amount in USD was equivalent to VND 123,789 billion, an average of VND 24,758 billion/day, an increase of VND 948 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms, accounting for 63% and 21% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight and 1-week terms, accounting for 64% 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 0.51 percentage points p.a, 0.38 percentage points p.a and 0.27 percentage points p.a to 3.17% p.a, 3.31% p.a and 3.56% 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 down by 0.03 percentage points p.a, 0.02 percentage points p.a and 0.10 percentage points p.a to 2.41% p.a, 2.51% p.a and 2.56% 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 |
3.17 |
3.31 |
3.39 |
3.56 |
4.69 |
5.37 |
4.50 |
USD |
2.41 |
2.51 |
2.58 |
2.56 |
2.78 |
2.75 |
- |
Translated by Le Hang