Developments in Money Market and Inter-bank Market (August 7-11, 2023)
1. Forex market and exchange rates:
During the week of August 7-11, 2023, the exchange rates were relatively stable. On August 7, 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 23,550/23,890 per USD, unchanged as compared with the rates of the last working day of the previous week (August 4, 2023). By end of August 11, the exchange rates were quoted at VND 23,570/23,910 per USD, up by 20 VND per USD as compared with the rates of August 7, 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 1,117,511 billion, an average of VND 223,502 billion per day, a decrease of VND 29,581 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 305,525 billion, an average of VND 61,105 billion per day, a decrease of VND 6,836 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 77% 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 opposite movements. Specifically, the average inter-bank interest rates for overnight and 1-week terms decreased by 0.01 percentage point p.a. and 0.04 percentage points p.a. respectively, to 0.2% p.a. and 0.41% p.a. respectively; meanwhile, the average inter-bank interest rate for 1-month term increased by 0.16 percentage points p.a. to 1.77% p.a..
- For transactions in USD: The average inter-bank interest rates were relatively stable, with slight fluctuations around the interest rates of the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were at 5.03% p.a., 5.04% p.a., and 5.26% 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 |
0.20 |
0.41 |
0.60 |
1.77 |
3.86 |
6.26 |
7.16 |
USD |
5.03 |
5.04 |
5.16 |
5.26 |
5.45 |
6.08 |
6.00 |
Translated by Le Hang.