Developments in Money Market and Inter-bank Market (May 31 – June 4, 2021)
1. Forex market and exchange rates:
During May 31 – June 4, 2021, the exchange rates and the forex market were relatively stable, and the market liquidity was ensured for smooth operations. On May 31, the buying and selling exchange rates quoted on the website of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) were at VND 22,945/23,145 per USD, up by 5 VND per USD for both buying and selling exchange rates as compared to those of the last working day of the previous week (May 28, 2021). By end of June 4, the exchanged rates were quoted at VND 22,950/23,150 per USD, up by 5 VND per USD as compared to the rates of May 31, 2021.
2. Inter-bank transaction operations:
2.1. 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 581,122 billion, an average of VND 116,224 billion per day, a decrease of VND 7,628 billion per day as compared to the previous week (May 24-28, 2021); meanwhile the transaction amount in USD was equivalent to VND 147,808 billion, an average of VND 29,562 billion per day, a decrease of VND 2,624 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 80% and 11% 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 12% of the total amount of USD transactions respectively.
2.2. Inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates increased for most terms. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms rose by 0.06 percentage points p.a, 0.05 percentage points p.a and 0.07 percentage points p.a, to 1.45% p.a, 1.55% p.a and 1.81% p.a respectively.
- For transactions in USD: The average inter-bank interest rates were relatively stable, with slight fluctuatations around the rates of the previous week. Specifically, the average inter-bank interest rates for overnight and 1-week terms remained at 0.10% p.a and 0.12% p.a respectively; the average inter-bank interest rate for 1-month term was up by 0.07 percentage points p.a to 0.19% p.a.
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 |
1.45 |
1.55 |
1.70 |
1.81 |
2.26 |
2.49 |
2.91 |
USD |
0.10 |
0.12 |
0.16 |
0.19 |
0.46 |
1.10 |
1.12 |
Translated by Le Hang