Weekly information on banking operations (July 16 - 20, 2018)
1. Forex market:
The buying and selling VND/USD exchange rates, which enlisted on website of commercial banks, were slightly increased. The exchange rates at the first 3 days of the week were stable at 23.010/23.080 VND/USD. Then the exchange rates at the 2 final trading day of the week were up to 23.015/23.085 (increased by 5 VND/USD as compared to the final trading day of the previous week).
The SBV will continue to conduct synchronous measures and monetary policy to stabilize the forex market and exchange rate within the set band.
2. Mobilizing and lending rates:
2.1. Mobilizing rates:
- VND mobilizing rates: The rates were commonly 0.6 – 1% p.a for demand and below 1-month terms, 4.3 – 5.5% p.a for 1 month to below 6 month terms, 5.3 – 6.5% p.a for 6 to below 12 month terms; and 6.5 – 7.3% p.a for 12 month plus term.
- USD mobilizing rates: The USD mobilizing rates were commonly 0% p.a for individuals and economic institutions.
2.2. Lending rates:
- VND lending rates: The rates were commonly 6.0% – 9.0% p.a for short-terms, and 9.0% – 11.0% p.a for medium- and long-term ordinary loans.
- USD lending rates were commonly 2.8% – 6.0% p.a. The rates were 2.8 – 4.7% p.a for short-term and 4.5 – 6.0% p.a for medium- and long-term loans.
3. Inter-bank transaction turnover:
3.1. Transactions:
According to reports from credit institutions and foreign bank branches, the total amount of transactions in the inter-bank market reached about VND 127,637 billion, an average of VND 25,527 billion/day, a decrease of VND 203 billion/day compared with the week of July 09 - 13, 2018; while the USD amount was equivalent to VND 86.954 billion, an average of VND 17.391 billion/day, a decrease of VND 462 billion/day compared to the previous week.
Most VND transactions were overnight and 1-week terms (accounting for 48% and 22% of the total amount of VND transactions respectively). Transactions in USD were mostly overnight and 1-week terms, accounting for 65% and 18% of the total amount of USD transactions respectively.
3.2. The average inter-bank interest rates:
- For VND transactions: the average inter-bank interest rates tended to increase as compared to the previous week. Specifically, the inter-bank interest rates for overnight, 1-week and 1-month term were up by 0.88%, 0.86% and 0.76% percentage point to 2.00% p.a, 2.23% p.a and 2.66% p.a, respectively.
- For USD transactions: The average inter-bank interest rates were up as compared to the previous week. Specifically, the inter-bank interest rates for overnight and 1-week- and 1-month-term increased by 0.04%, 0.03% and 0.29% percentage point to 2.01% p.a; 2.12% p.a and 2.57% p.a respectively.
The specific average inter-bank interest rates were as follows:
Term |
Over night |
1 week |
2 weeks |
1 month |
3 months |
6 months |
9 months |
VND |
2.00 |
2.23 |
2.09 |
2.66 |
2.90 |
4.66 |
- |
USD |
2.01 |
2.12 |
2.24 |
2.57 |
2.57 |
3.33 |
- |
The State Bank of Vietnam
Translated by Giang Nguyen