Developments in Money Market and Inter-bank Market (November 28 – December 2, 2022)
1. Forex market and exchange rates:
During the week of November 28 – December 2, 2022, the USD/VND exchange rates was on a downward trend. On November 28, 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 24,600/24,840 per USD, unchanged as compared with the rates of the last working day of the previous week (November 25, 2022). By end of December 2, the exchange rates were quoted at VND 23,960/24,240 per USD, down by 640/600 VND per USD as compared with the rates of November 28, 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 1,324,512 billion, an average of VND 264,902 billion per day, an increase of VND 835 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 292,044 billion, an average of VND 58,409 billion per day, an increase of VND 5,249 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 93% and 4% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 79% and 14% 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 in different terms as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week terms decreased by 0.46 percentage points and 0.42 percentage points, to 5.52% p.a. and 6.07% p.a. respectively. Meanwhile, the average inter-bank interest rate for 1-month term increased by 0.9 percentage points to 9.11% p.a.
- For transactions in USD: The average inter-bank interest rates were relatively stable and experienced slight fluctuations around the rates of the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were 3.82% p.a., 3.9% p.a., and 4.29% 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 |
5.52 |
6.07 |
7.20 |
9.11 |
10.25 |
6.80 |
- |
USD |
3.82 |
3.90 |
4.09 |
4.29 |
4.69 |
5.37 |
6.12 |
Translated by Le Hang.