Weekly Bulletin on Banking Operations (April 22 - 26, 2019)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were stable for the first two days of the week at VND 23,165/23,265 against the USD; then were increasing each day at VND 23,190/23,290 against the USD and at VND 23,210/23,310 against the USD; finally was quoted at VND 23,230/23,330 against the USD on the last day of the week (up by 75 VND/USD for both buying and selling exchange rates as compared to the last day of the previous week).
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. Transaction amounts:
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 266,625 billion, an average of VND 53,325 billion/day, an increase of VND 7,537 billion/day as compared to the week of April 15 - 19, 2019; meanwhile the transaction amount in USD was equivalent to VND 137,291 billion, an average of VND 26,858 billion/day, an increase of VND 8,377 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms (accounting for 52% and 18% of the total amount of VND transactions respectively). The transactions in USD were mostly for overnight and 1-week terms, accounting for 49% and 30% of the total amount of USD transactions respectively.
3.2. Average inter-bank interest rates:
- For transactions in VND: As compared to the previous week, the average inter-bank interest rates were on a downward trend for most major terms. Specifically, the inter-bank interest rate for overnight, 1-week and 1-month terms were down by 1.04 percentage point p.a, 1.62 percentage point p.a and 0.69 percentage points p.a to 3.09% p.a, 2.62% p.a and 3.66% p.a respectively.
- For transactions in USD: The average inter-bank interest rates were relatively stable, with slight fluctuations around the rates of the previous week. Specifically, the inter-bank interest rates for overnight, 1-week and 1-month terms were 2.46% p.a, 2.53% p.a and 2.71% p.a respectively.
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 |
3.09 |
2.62 |
3.41 |
3.66 |
4.35 |
4.96 |
5.78 |
USD |
2.46 |
2.53 |
2.60 |
2.71 |
2.81 |
3.52 |
4.24 |
Translated by VA