Weekly Bulletin on Banking Operations (December 10 - 14, 2018)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were on the downward trend with a decrease of 05 – 10 VND per USD each day during the first four days of the week, from VND 23.265/23.355 against the USD to VND 23.240/23.330 against the USD on December 13. At the last day of week, the exchange rate slightly increased to VND 23.255/23.345 against the USD. The both buying and selling rates were down by 15 VND/USD as compared to the last day of the previous week, the December 07.
The State Bank of Vietnam (SBV) continued to conduct synchronous measures and manage the monetary policy to stabilize the forex market and the exchange rates within the set band.
2. Mobilization and lending interest rates:
2.1. Mobilization interest rates:
- The mobilization interest rates in VND: The common rates were between 0.5% p.a – 1% p.a for demand and below 1-month term deposits, 4.5% p.a – 5.5% p.a for 1-month to below 6-month terms, 5.5% p.a – 6.5% p.a for 6-month to below 12-month terms; and 6.6% – 7.3% p.a for 12-month plus terms.
- The mobilization interest rates in USD: The common mobilization interest rate in USD was 0% p.a for both individuals’ and institutions’ deposits.
2.2. Lending rates:
- The lending interest rates in VND: The common average rates were between 6.0 – 9.0% p.a for short-term loans; 9.0% p.a – 11.0% p.a for medium and long-term loans.
- The lending interest rates in USD: The common rates were between 2.8% – 6.0% p.a. The rates were 2.8% p.a – 4.7% p.a for short-term loans and 4.5 – 6.0% p.a for medium and long-term loans.
3. Inter-bank transaction operations:
3.1. 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 234,603 billion, an average of VND 46,921 billion/day, a decrease of VND 1,829 billion/day as compared to the week of December 03 - 07, 2018; meanwhile the transaction amount in USD was equivalent to VND 89,155 billion, an average of VND 17,831 billion/day, a decrease of VND 4,099 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms (accounting for 62% and 22% of the total amount of VND transactions respectively). The transactions in USD were mostly for overnight and 1-week terms, accounting for 71% and 18% of the total amount of USD transactions respectively.
3.2. The average inter-bank interest rates:
- For transactions in VND: As compared to the previous week, average inter-bank interest rates were on upward trend for below 1-month terms. Specifically, the inter-bank interest rates for overnight and 1-week and 1-month terms were up by 0.04 percentage points, 0.02 and 0.09 percentage point to 4.85% p.a, 4.85% and 5.18 p.a respectively.
- For transactions in USD: The average inter-bank interest rates were relatively stable. The average inter-bank interest rates for short terms fluctuated slightly around those average rates of the previous week. Specifically, the inter-bank interest rates for overnight and 1-month term reduce by 0.01 percentage points p.a and 0.1 percentage points p.a to 2.28% p.a and 2.58 percentage points p.a respectively; The rates for 1-week slightly increased by 0.01 percentage points p.a to 2.38% p.a.
The specific average inter-bank interest rates were as follows:
Term |
Overnight |
1-week |
2-week |
1-month |
3-month |
6-month |
9-month |
VND |
4.85 |
4.85 |
4.90 |
5.18 |
5.61 |
6.11 |
- |
USD |
2.28 |
2.38 |
2.39 |
2.58 |
2.84 |
3.98 |
- |
Translated by MH