Developments in Money Market and Inter-bank Market (July 17-21, 2023)
1. Forex market and exchange rates:
During the week of July 17-21, 2023, the exchange rates experienced opposite movements. On July 17, 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 23,460/23,800 per USD, down by 10 VND per USD as compared with the rates of the last working day of the previous week (July 14, 2023). By end of July 21, the exchange rates were quoted at VND 23,480/23,820 per USD, up by 20 VND per USD as compared with the rates of July 17, 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 1,134,089 billion, an average of VND 226,818 billion per day, an increase of VND 3,379 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 306,624 billion, an average of VND 61,325 billion per day, an increase of VND 1,767 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 85% 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 75% and 16% 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 developments as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight and 1-week terms increased by 0.05 percentage points p.a. and 0.02 percentage points p.a. respectively, to 0.27% p.a., and 0.43% p.a. respectively; meanwhile the average inter-bank interest rate for 1-month term decreased by 0.43 percentage points p.a. to 1.95% 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 at 4.85% p.a., 4.86% p.a., and 5.24% 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 |
0.27 |
0.43 |
0.62 |
1.95 |
4.15 |
6.48 |
- |
USD |
4.85 |
4.86 |
4.99 |
5.24 |
5.32 |
5.83 |
6.00 |
Translated by Le Hang.