Developments in Money Market and Inter-bank Market (August 16 - 20, 2021)
1. Forex market and exchange rates:
During the week of August 16 - 20, 2021, the exchange rates and the forex market were relatively stable, the USD/VND exchange rates experienced a slight downward trend, and the market liquidity was ensured for smooth operations. On August 16, 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 22,740/22,940 per USD, up by 10 VND per USD as compared to those of the last working day of the previous week (August 13, 2021). By end of August 20, the exchanged rates were quoted at VND 22,715/22,915 per USD, down by 25 VND per USD as compared to the rates of August 16, 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 689,285 billion, an average of VND 137,857 billion per day, an increase of VND 2,792 billion per day as compared to the previous week (August 9 - 13, 2021); meanwhile the transaction amount in USD was equivalent to VND 129,105 billion, an average of VND 25,821 billion per day, a decrease of VND 42 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 83% and 8% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 70% and 18% of the total amount of USD transactions respectively.
2.2. Inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates generally experienced a downward trend as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms decreased by 0.12 percentage points, 0.14 percentage points and 0.01 percentage point respectively, to 0.71% p.a, 0.84% p.a and 1.29% p.a respectively.
- For transactions in USD: The average inter-bank interest rates of the key terms were relatively stable, with slight fluctuations around those of the previous week. Specifically, the average inter-bank interest rate for overnight term remained at 0.10% p.a. Meanwhile, the average inter-bank interest rates for 1-week and 1-month terms increased by 0.01 percentage point and 0.02 percentage points respectively, to 0.12% p.a and 0.22% 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 |
0.71 |
0.84 |
0.96 |
1.29 |
1.98 |
3.11 |
0.00 |
USD |
0.10 |
0.12 |
0.15 |
0.22 |
0.42 |
1.07 |
1.34 |
Translated by LK.