Weekly Bulletin on Banking Operations (August 5-9, 2019)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites increased from VND 23,165/23,285 against the USD to VND 23,190/23,310 against the USD on the first two days of the week; then went down to VND 23,160/23,280 against the USD on the following days. After that, the exchange rates continue to decline and were quoted at VND 23,140/23,260 against the USD on the last day of the week (down by 20 VND per 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 0.2% 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 – 6.8% p.a for 6-month to below 12-month terms; and 6.6% – 7.5% 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 289,798 billion, an average of VND 57,960 billion/day, a decrease of VND 4,548 billion/day as compared to the week of July 29 - August 2, 2019; meanwhile the transaction amount in USD was equivalent to VND 120,602 billion, an average of VND 24,120 billion/day, a decrease of VND 6,419 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms, accounting for 66% and 20% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight and 1-week terms, accounting for 74% 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, the average inter-bank interest rates increased for most of the short terms, except for the 1-month term. Specifically, the average inter-bank interest rates for overnight and 1-week terms rose by 0.24 percentage points p.a and 0.17 percentage points p.a to 3.01% p.a and 3.09% p.a; while the average inter-bank interest rate for 1-month term declined by 0.73 percentage points p.a to 3.41% p.a.
- For transactions in USD: The average inter-bank interest rates were on a slight downward trend for most terms. Specifically, the average inter-bank interest rates for overnight and 1-week terms were down by 0.13 percentage points p.a and 0.12 percentage points p.a to 2.22% p.a and 2.3% 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 |
3.01 |
3.09 |
3.23 |
3.41 |
4.15 |
4.30 |
- |
USD |
2.22 |
2.30 |
2.32 |
2.48 |
2.48 |
3.02 |
3.09 |
Translated by Le Hang