Developments in Money Market and Inter-bank Market (March 27 - 31, 2023)
1. Forex market and exchange rates:
During the week of March 27 - 31, 2023, the foreign exchange market was relatively stable, and the foreign exchange rates experienced a downward trend. On March 27, 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 23,340/23,680 per USD, unchanged as compared with the rates of the last working day of the previous week (March 24, 2023). By end of March 31, the exchange rates were quoted at VND 23,290/23,630 per USD, down by 50 VND per USD as compared with the rates of March 27, 2023.
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 1,371,653 billion, an average of VND 274,331 billion per day, an increase of VND 57,293 billion per day as compared to the previous week (March 20 - 24, 2023); meanwhile the transaction amount in USD was equivalent to VND 329,802 billion, an average of VND 65,960 billion per day, an increase of VND 5.552 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 81% and 15% of the total amount of USD transactions respectively.
2.2. Inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates continued the downward trend from the previous weeks. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms decreased by 0.75 percentage points, 0.51 percentage points and 0.20 percentage points respectively, to 1.02% p.a., 1.66% p.a. and 4.45% 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 rates for overnight and 1-week terms increased by 0.13% percentage points and 0.08% percentage points respectively, to 4.62% p.a. for both terms. On the other side, the average inter-bank interest rate for 1-month term deceased by 0.25 percentage points, to 4.71% 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 |
1.02 |
1.66 |
2.44 |
4.45 |
7.23 |
8.22 |
- |
USD |
4.62 |
4.62 |
4.76 |
4.71 |
5.72 |
5.00 |
5.59 |
Translated by LK.