Weekly Bulletin on Banking Operations (February 10 – 14, 2020)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were at VND 23,170/23,310 against the USD on the first day of the week and increased slightly to VND 23,180/23,320 against the USD on the next day. Then the exchange rates decreased to VND 23,170/23,310 and VND 23,160/23,300 against the USD on the third and fourth days of the week. On the last day of the week, the exchange rates slightly increased and were finally quoted at VND 23,175/23,315 against the USD (up by VND 5 per USD for both buying and selling rates as compared to the last day of the previous week (February 07, 2020)).
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 – 0.8% p.a for demand and below 1-month term deposits, 4.3% p.a – 5.0% p.a for 1-month to below 6-month terms, 5.3% p.a – 7.0% 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% p.a – 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 3.0% p.a – 6.0% p.a. The rates were 3.0% p.a – 4.7% p.a for short-term loans, and 4.5% p.a – 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 299,347 billion, an average of VND 64,371 billion per day, a decrease of VND 4,502 billion per day as compared to the previous week (February 3 – 7, 2020); meanwhile the transaction amount in USD was equivalent to VND 150,492 billion, an average of VND 28,926 billion per day, an increase of VND 1,173 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 71% and 18% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 67% and 24% of the total amount of USD transactions respectively.
3.2. The average inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates decreased for most terms as compared to the previous week. Specifically, the average inter-bank interest rates for overnight term, 1-week term and 1-month term were down by 0.6 percentage points p.a, 0.22 percentage points p.a and 0.5 percentage points p.a to 2.17% p.a, 2.4% p.a and 3.01% p.a respectively.
- For transactions in USD: The average inter-bank interest rates slightly fluctuated for most terms as compared to the previous week. Specifically, the average inter-bank interest rates for overnight term, 1-week and 1-month terms were 1.63% p.a, 1.67% p.a and 1.87% 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 |
2.17 |
2.40 |
2.50 |
3.01 |
4.04 |
4.74 |
5.63 |
USD |
1.63 |
1.67 |
1.72 |
1.87 |
1.91 |
2.48 |
- |
Translated by VA