Weekly Bulletin on Banking Operations (July 29 – August 2, 2019)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were at VND 23,155/23,275 against the USD on the first day of the week; then went down to VND 23,140/23,260 against the USD on the following two days. On the last day of the week, the exchange rates slightly increased by 5-15 VND per USD and were quoted at VND 23,160/23,280 against the USD (up by 5 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 0.2% 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 – 6.8% p.a for 6-month to below 12-month terms; and 6.6% – 7.5% 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 312,538 billion, an average of VND 62,508 billion/day, an increase of VND 11,874 billion/day as compared to the week of July 22-26, 2019; meanwhile the transaction amount in USD was equivalent to VND 152,697 billion, an average of VND 30,539 billion/day, an increase of VND 9,529 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms, accounting for 66% and 16% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight and 1-week terms, accounting for 71% and 20% 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 an upward trend for most terms, except for 2-week and 3-month terms.
- For transactions in USD: The average inter-bank interest rates increased for most terms in comparison with the previous week.
The specific average inter-bank interest rates were as follows:
Overnight |
1-week |
2-week |
1-month |
3-month |
6-month |
9-month |
|
VND |
|||||||
Week of July 29-August 2 |
2.77 |
2.92 |
3.08 |
4.14 |
4.13 |
5.64 |
- |
Week of July 22-26 |
2.74 |
2.90 |
3.13 |
3.95 |
4.31 |
5.19 |
- |
Up/down |
0.03 |
0.02 |
-0.05 |
0.19 |
-0.18 |
0.45 |
- |
USD |
|||||||
Week of July 29-August 2 |
2.35 |
2.42 |
2.42 |
2.47 |
2.79 |
3.22 |
3.05 |
Week of July 22-26 |
2.41 |
2.50 |
2.53 |
2.61 |
2.91 |
3.25 |
3.15 |
Up/down |
-0.06 |
-0.08 |
-0.11 |
-0.14 |
-0.12 |
-0.03 |
-0.10 |
Translated by Le Hang