Developments in Money Market and Inter-bank Market (June 3-7, 2024)
1. Forex market and exchange rates:
During the week of June 3-7, 2024, the exchange rates were on a downward trend. On June 3, 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 25,234/25,474 per USD, a change of -20/0 VND per USD as compared with the rates of the last working day of the previous week (May 31, 2024). By the end of June 7, 2024, the exchange rates were quoted at VND 25,213/25,453 VND per USD, down by 21 VND per USD as compared with the rates of June 3, 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 1,458,022 billion, an average of VND 291,604 billion per day, a decrease of VND 93,785 billion per day as compared to the previous week; meanwhile, the transaction amount in USD was equivalent to VND 323,861 billion, an average of VND 64,772 billion per day, a decrease of VND 382 billion per day as compared to the previous week.
With regard to the maturities, most of the transactions in VND were for overnight and 1-week terms, accounting for 88.87% and 4.35% of the total amount of VND transactions respectively. The transactions in USD were mainly for overnight and 1-week terms, accounting for 82.77% and 12.04% of the total amount of transactions respectively.
2.2. Inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates for 1-month to 6-month terms increased, of which the average inter-bank interest rate for 2-month term experienced the biggest increase of 0.65 percentage points p.a., followed by the 3-month term, which increased by 0.58 percentage points p.a.
- For transactions in USD: The average inter-bank interest rates for below 1-month terms experienced slight changes within a narrow range (from -0.02 percentage points p.a. to 0.06 percentage points p.a.). The average inter-bank interest rates for overnight and 1-week terms were at 5.31% and 5.35%.
The specific average inter-bank interest rates were as follows:
Overnight |
1-week |
2-week |
1-month |
3-month |
6-month |
9-month |
|
VND |
3.93 |
4.39 |
4.79 |
4.95 |
5.44 |
5.93 |
- |
USD |
5.31 |
5.35 |
5.39 |
5.41 |
5.52 |
6.25 |
6.01 |
Translated by Le Hang