Weekly Bulletin on Banking Operations (September 28 – October 2, 2020)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the website of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) (at the end of the days) slightly fluctuated between VND 23,090/23,270 per USD and VND 23,100/23,280 per USD. On September 28-29, 2020, the rates were quoted at VND 23,100/23,280 per USD, up by VND 10 for both buying and selling exchange rates as compared to the last day of the previous week (September 25, 2020). On September 30, 2020, the exchange rates fell slightly to VND 23,090/23,270 per USD (same as the rates of September 25, 2020), then rose back to VND 23,100/23,280 per USD on October 1-2, 2020.
2. Mobilization and lending interest rates:
2.1. Mobilization interest rates:
- The mobilization interest rates in VND: The common rates were on a downward trend in comparison with those at the end of 2019, standing at 0.1% p.a – 0.2% p.a for demand and below 1-month term deposits, 3.5% p.a – 4.0% p.a for 1-month to below 6-month terms, 4.4% p.a – 6.2% p.a for 6-month to below 12-month terms, and 6.0% p.a – 7.0% 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 on a downward trend as compared to those at the end of 2019. The cap for VND lending rate for short-term loans of 5.0% p.a continued to be applied to a number of sectors and fields.
- 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 – 4.5% p.a for short-term loans, and 4.2% 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 279,837 billion, an average of VND 61,551 billion per day, an increase of VND 2,052 billion per day as compared to the previous week (September 21-25, 2020); meanwhile the transaction amount in USD was equivalent to VND 167,395 billion, an average of VND 29,255 billion per day, an increase of VND 5,878 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 66% and 18% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 82% and 8% of the total amount of USD transactions respectively.
3.2. Average inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates decreased for most terms. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were 0.1% p.a, 0.25% p.a and 0.47% p.a respectively.
- For transactions in USD: The average inter-bank interest rates were unchanged for overnight and 1-week terms, while decreased for 1-month term. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were 0.12% p.a, 0.13% p.a and 0.26% p.a respectively.
The specific average inter-bank interest rates were as follows:
Unit: % p.a
Overnight |
1-week |
2-week |
1-month |
3-month |
6-month |
9-month |
|
VND |
0.1 |
0.25 |
0.26 |
0.47 |
1.62 |
3.53 |
- |
USD |
0.12 |
0.13 |
0.15 |
0.26 |
0.4 |
0.9 |
- |
Translated by Le Hang