Weekly Bulletin on Banking Operations (January 30 – 31, 2020)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites increased from VND 23,105/23,245 to VND 23,165/23,305 against the USD (up by VND 35 per USD for both of the buying rate and the selling rate as compared to the last working day of the week before the Lunar New Year break (January 22, 2020).
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 – 0.8% p.a for demand and below 1-month term deposits, 4.3% p.a – 5.0% p.a for 1-month to below 6-month terms, 5.3% p.a – 7.0% 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% p.a – 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 3.0% p.a – 6.0% p.a. The rates were 3.0% p.a – 4.7% p.a for short-term loans, and 4.5% p.a – 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 151,958 billion, an average of VND 30,392 billion per day, a decrease of VND 30,421 billion in total as compared to the week of January 13 – 17, 2020; meanwhile the transaction amount in USD was equivalent to VND 65,800 billion, an average of VND 13,160 billion per day, a decrease of VND 15,427 billion in total as compared to the week of January 13 – 17, 2020.
Most VND transactions were for overnight term and 1-week term, accounting for 76% and 10% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 72% 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 for most terms increased; except for the 3-week term, the 1-month term and the 6-month term. Specifically, the average inter-bank interest rates for overnight term and 1-week term were up by 1.92 percentage points p.a and 1.74 percentage points p.a to 3.01% p.a. and 3.22% p.a respectively. While the average inter-bank interest rates for 1-month term were slightly down by 0.02 percentage points p.a to 3.52% p.a.
- For transactions in USD: The average inter-bank interest rates slightly fluctuated for most terms as compared to the previous week. Specifically, the average inter-bank interest rates for overnight term, 1-week and 1-month terms were 1.63% p.a, 1.71% p.a and 1.87% 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 |
3.01 |
3.22 |
3.58 |
3.52 |
4.78 |
4.93 |
- |
USD |
1.63 |
1.71 |
1.68 |
1.87 |
2.00 |
3.00 |
- |
Translated by VA