Developments in Money Market and Inter-bank Market (February 14 - 18, 2022)
1. Forex market and exchange rates:
During the week of February 14 - 18, 2022, the forex market was relatively stable, the USD/VND exchange rates experienced a slight increase while the market liquidity was ensured for smooth operations. On February 14, 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 22,580/22,860 per USD, up by 30 VND per USD as compared with the rates of the last working day of the previous week (February 11, 2022). By end of February 18, the exchange rates were quoted at VND 22,700/22,980 per USD, up by 120 VND per USD as compared with the rates of February 14, 2022.
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 886,693 billion, an average of VND 177,339 billion per day, a decrease of VND 13,862 billion per day as compared to the previous week (February 07 - 11, 2022); meanwhile the transaction amount in USD was equivalent to VND 189,971 billion, an average of VND 37,994 billion per day, a decrease of VND 8,959 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 88% and 6% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 69% and 20% 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 in most of the terms as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms decreased by 0.1 percentage point, 0.11 percentage points and 0.34 percentage points respectively, to 2.81% p.a., 2.81% p.a. and 2.75% p.a. respectively.
- For transactions in USD: The average inter-bank interest rates experienced a slight downward trend in the key terms as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms decreased by 0.02 percentage points, 0.03 percentage points and 0.01 percentage point respectively, to 0.1% p.a., 0.13% p.a. and 0.28% 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 |
2.81 |
2.81 |
2.66 |
2.75 |
3.02 |
3.39 |
3.49 |
USD |
0.10 |
0.13 |
0.16 |
0.28 |
0.50 |
1.50 |
- |
Translated by LK.