Weekly Bulletin on Banking Operations (January 4-8, 2021)
1. Forex market and exchange rates:
On January 4, 2021, the buying and selling exchange rates quoted on the website of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) stood at VND 23,010/23,190 per USD, a decrease of VND 25 respectively as compared to the exchange rates of the last working day of the previous week (December 31, 2020). Between January 5-8, 2021, the buying and selling exchange rates continued to go down and were quoted at VND 22,980/23,160 per USD, down by VND 55 each as compared to the exchange rates of the last working day of the previous week (December 31, 2020).
2. Mobilization and lending interest rates:
2.1. Mobilization interest rates:
- The mobilization interest rates in VND: The common rates were on a downward trend in comparison with those at the end of 2019, standing at 0.1% p.a – 0.2% p.a for demand and below 1-month term deposits, 3.2% p.a – 3.9% p.a for 1-month to below 6-month terms, 4.0% p.a – 6.0% p.a for 6-month to below 12-month terms, and 5.6% p.a – 6.8% 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 on a downward trend as compared to those at the end of 2019. The cap for VND lending rate for short-term loans of 4.5% p.a continued to be applied to a number of sectors and fields.
- 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 – 4.5% p.a for short-term loans, and 4.2% 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 388,124 billion, an average of VND 77,625 billion per day, a decrease of VND 21,940 billion per day as compared to the previous week (December 28-31, 2020); meanwhile the transaction amount in USD was equivalent to VND 155,805 billion, an average of VND 31,161 billion per day, an increase of VND 7,859 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 67% and 14% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 74% and 14% of the total amount of USD transactions respectively.
3.2. Average inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates slightly increased for most terms. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were 0.12% p.a, 0.34% p.a and 0.31% p.a respectively.
- For transactions in USD: The average inter-bank interest rates fluctuated slightly for all terms. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were 0.11% p.a, 0.13% p.a and 0.02% p.a respectively.
The specific average inter-bank interest rates were as follows:
Unit: % p.a
Overnight |
1-week |
2-week |
1-month |
3-month |
6-month |
9-month |
|
VND |
0.12 |
0.34 |
0.24 |
0.31 |
1.40 |
2.51 |
4.04 |
USD |
0.11 |
0.13 |
0.17 |
0.02 |
0.71 |
1.00 |
0.89 |
Translated by VA