Developments in Money Market and Inter-bank Market (January 8-12, 2024)
1. Forex market and exchange rates:
During the week of January 8-12, 2024, the exchange rates were on an upward trend. On January 8, 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 24,175/24,515 per USD, down by 15 VND per USD as compared with the rates of the last working day of the previous week (January 5, 2023). By end of January 12, the exchange rates were quoted at VND 24,290/24,630 per USD, up by 115 VND per USD as compared with the rates of January 8, 2024.
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 VND in the inter-bank market within the week reached approximately VND 1,472,202 billion, an average of VND 294,440 billion per day, a decrease of VND 8,904 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 255,113 billion, an average of VND 51,023 billion per day, a decrease of VND 9,127 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 90% and 5% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 59% and 35% of the total amount of USD transactions respectively.
2.2. Inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates for 1-month term increased by 0.3 percentage points p.a., while the average inter-bank interest rates for the remaining terms decreased as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week, 2-week and 3-week terms decreased by 0.32 percentage points p.a., 0.35 percentage points p.a., 0.65 percentage points p.a., and 0.7 percentage points p.a. respectively.
- For transactions in USD: The average inter-bank interest rates slightly increased as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight and 1-week terms both increased by 0.03 percentage points p.a., while the average inter-bank interest rate for 1-month term decreased by 0.03 percentage points 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 |
0.15 |
0.27 |
0.53 |
2.14 |
3.07 |
4.33 |
5.58 |
USD |
5.08 |
5.10 |
5.16 |
5.34 |
5.40 |
6.03 |
5.73 |
Translated by Le Hang.