Developments in Money Market and Inter-bank Market (July 31 - August 4, 2023)
1. Forex market and exchange rates:
During the week of July 31 - August 4, 2023, the exchange rates experienced opposite movements. On July 31, 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 23,515/23,855 per USD, down by 5 VND per USD as compared with the rates of the last working day of the previous week (July 28, 2023). By end of August 4, the exchange rates were quoted at VND 23,550/23,890 per USD, up by 35VND per USD as compared with the rates of July 31, 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 1,265,416 billion, an average of VND 253,083 billion per day, an increase of VND 22,460 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 339,704 billion, an average of VND 67,941 billion per day, an increase of VND 5,521 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 88% and 7% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 80% and 17% 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 an upward trend in most of the terms as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight and 1-week and 1-month terms increased by 0.01 percentage point p.a., 0.05 percentage points p.a., and 0.19% p.a. respectively, to 0.21% p.a., 0.45% p.a., and 1.61% p.a. respectively.
- For transactions in USD: The average inter-bank interest rates experienced an upward trend in most of the terms. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were up by 0.09 percentage points p.a., 0.09 percentage points p.a., and 0.06 percentage points p.a. respectively, to 5.01% p.a., 5.05% p.a., and 5.36% 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 |
0.21 |
0.45 |
0.69 |
1.61 |
4.21 |
6.20 |
7.82 |
USD |
5.01 |
5.05 |
5.13 |
5.36 |
5.62 |
6.45 |
6.17 |
Translated by Le Hang.