Developments in Money Market and Inter-bank Market (November 29 – December 3, 2021)
1. Forex market and exchange rates:
During the week of November 29 – December 3, 2021, the USD/VND exchange rates and the forex market were relatively stable, with the USD/VND exchange rates experiencing a slight upward trend, and the market liquidity was ensured for smooth operations. On November 29, 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 22,590/22,790 per USD, up by 15 VND per USD as compared with the rates of the last working day of the previous week (November 26, 2021). By end of December 3, the exchange rates were quoted at VND 22,700/22,940 per USD, up by 110/150 VND per USD as compared with the rates of November 29, 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 762,939 billion, an average of VND 152,588 billion per day, an increase of VND 3,285 billion per day as compared to the previous week (November 22 - 26, 2021); meanwhile the transaction amount in USD was equivalent to VND 185,362 billion, an average of VND 37,072 billion per day, an increase of VND 5,674 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 82% and 9% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 73% and 13% of the total amount of USD transactions respectively.
2.2. Inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates were relatively stable, with slight fluctuations as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight and 1-week terms increased slightly by 0.01 percentage point and 0.02 percentage points respectively, to 0.64% p.a. and 0.73% p.a. respectively. Meanwhile, the average inter-bank interest rate for 1-month term decreased slightly by 0.04 percentage points to 1.29% p.a.
- For transactions in USD: The average inter-bank interest rates were relatively stable as compared to those of the previous week. Specifically, the average inter-bank interest rate for overnight term was unchanged as compared to that of the previous week, standing at 0.1% p.a. The average inter-bank interest rate for 1-week term decreased slightly by 0.01 percentage point to 0.12% p.a., while the average inter-bank interest rate for 1-month term increased slightly by 0.03 percentage points to 0.22% 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 |
0.64 |
0.73 |
0.93 |
1.29 |
2.22 |
2.72 |
3.14 |
USD |
0.10 |
0.12 |
0.18 |
0.22 |
0.39 |
1.04 |
1.12 |
Translated by LK.