Developments in Money Market and Inter-bank Market (December 06 - 10, 2021)
1. Forex market and exchange rates:
During the week of December 06 - 10, 2021, the USD/VND exchange rates and the forex market were relatively stable and the market liquidity was ensured for smooth operations. On December 06, 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 22,980/23,220 per USD, up by 280 VND per USD as compared with the rates of the last working day of the previous week (December 03, 2021). By end of December 10, the exchange rates were quoted at VND 22,860/23,100 per USD, down by 120 VND per USD as compared with the rates of December 06, 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 729,445 billion, an average of VND 145,889 billion per day, a decrease of VND 6,699 billion per day as compared to the previous week (November 29 – December 03, 2021); meanwhile the transaction amount in USD was equivalent to VND 167,722 billion, an average of VND 33,544 billion per day, a decrease of VND 3,528 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 80% 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 67% 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 experienced opposite movements as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight and 1-month terms decreased slightly by 0.01 percentage point and 0.04 percentage points respectively, to 0.63% p.a. and 1.25% p.a. respectively. Meanwhile, the average inter-bank interest rate for 1-week term increased slightly by 0.06 percentage points to 0.79% p.a.
- For transactions in USD: The average inter-bank interest rates generally experienced a slight upward trend as compared to those of the previous week. Specifically, the average inter-bank interest rate for 1-week and 1-month terms increased slightly by 0.04 percentage points and 0.02 percentage points respectively, to 0.16% p.a. and 0.24% p.a. respectively. meanwhile, 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 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 |
0.63 |
0.79 |
1.05 |
1.25 |
2.09 |
2.91 |
3.70 |
USD |
0.10 |
0.16 |
0.17 |
0.24 |
0.50 |
0.54 |
- |
Translated by LK.