Developments in Money Market and Inter-bank Market (May 24-28, 2021)
1. Forex market and exchange rates:
During May 24-28, 2021, the exchange rates and the forex market were relatively stable, and the market liquidity was ensured for smooth operations. On May 24, the buying and selling exchange rates quoted on the website of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) were at VND 22,960/23,160 per USD, up by 10 VND per USD for both buying and selling exchange rates as compared to those of the last working day of the previous week (May 21, 2021). By end of May 28, the exchanged rates were quoted at VND 22,940/23,140 per USD, down by 20 VND per USD as compared to the rates of May 24, 2021.
2. Inter-bank transaction operations:
2.1. 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 619,263 billion, an average of VND 123,853 billion per day, an increase of VND 1,483 billion per day as compared to the previous week (May 17-21, 2021); meanwhile the transaction amount in USD was equivalent to VND 160,929 billion, an average of VND 32,186 billion per day, a decrease of VND 2,283 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 80% and 9% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 62% and 23% of the total amount of USD transactions respectively.
2.2. Inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates increased for most terms. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms rose by 0.17 percentage points p.a, 0.11 percentage points p.a and 0.18 percentage points p.a, to 1.39% p.a, 1.5% p.a and 1.74% 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 average inter-bank interest rate for overnight term remained at 0.10% p.a; the average inter-bank interest rates for 1-week and 1-month terms were down by 0.01 percentage point p.a and 0.09 percentage points p.a, to 0.12% p.a for both rates.
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 |
1.39 |
1.50 |
1.66 |
1.74 |
1.88 |
2.74 |
3.00 |
USD |
0.10 |
0.12 |
0.15 |
0.12 |
0.43 |
0.88 |
1.18 |
Translated by Le Hang