Developments in Money Market and Inter-bank Market (October 11 - 15, 2021)
1. Forex market and exchange rates:
During the week of October 11 - 15, 2021, the USD/VND exchange rates and the forex market were relatively stable, and the market liquidity was ensured for smooth operations. On October 11, 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 22,660/22,860 per USD, unchanged as compared with the rates of the last working day of the previous week (October 8, 2021). By end of October 15, the exchange rates were quoted at VND 22,660/22,860 per USD, unchanged as compared with the rates of October 11, 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 694,619 billion, an average of VND 138,924 billion per day, an increase of VND 1,146 billion per day as compared to the previous week (October 4 – 8, 2021); meanwhile the transaction amount in USD was equivalent to VND 144,874 billion, an average of VND 28,975 billion per day, a decrease of VND 2,038 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 79% and 12% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 68% and 22% of the total amount of USD transactions respectively.
2.2. Inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates experienced a downward trend as compared to those of the previous week. Specifically, the average inter-bank interest rate for overnight, 1-week and 1-month terms decreased by 0.01 percentage point, 0.05 percentage points and 0.04 percentage points respectively, to 0.66% p.a., 0.73% p.a., and 1.27% p.a. respectively.
- For transactions in USD: The average inter-bank interest rates experienced opposite movements as compared to those of the previous week. Specifically, the average inter-bank interest rate for overnight term remained at 0.10% p.a. Meanwhile, the average inter-bank interest rates for 1-week and 1-month terms both increased by 0.01 percentage point, to 0.12% p.a. and 0.2% 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 |
0.66 |
0.73 |
0.97 |
1.27 |
1.98 |
3.07 |
5.14 |
USD |
0.10 |
0.12 |
0.15 |
0.20 |
0.29 |
1.01 |
- |
Translated by LK.