Weekly Bulletin on Banking Operations (August 12-16, 2019)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were at VND 23,145/23,265 against the USD on the first two days of the week; then slightly increased to VND 23,150/23,270 against the USD on the last three days of the week (up by 10 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 354,305 billion, an average of VND 70,861 billion/day, an increase of VND 12,901 billion/day as compared to the week of August 5-9, 2019; meanwhile the transaction amount in USD was equivalent to VND 119,210 billion, an average of VND 23,842 billion/day, a decrease of VND 278 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms, accounting for 67% and 20% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight and 1-week terms, accounting for 69% and 22% 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 decreased for below 1-month terms. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms declined by 0.01 percentage point p.a, 0.04 percentage points p.a and 0.04 percentage points p.a to 3.0% p.a, 3.06% p.a and 3.37% p.a respectively.
- 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, 1-week and 1-month terms were down by 0.04 percentage points p.a, 0.05 percentage points p.a and 0.02 percentage points p.a to 2.18% p.a, 2.25% p.a and 2.46 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 |
3.00 |
3.06 |
3.09 |
3.37 |
4.18 |
5.48 |
- |
USD |
2.18 |
2.25 |
2.29 |
2.46 |
2.77 |
3.22 |
- |
Translated by Le Hang