Developments in Money Market and Inter-bank Market (September 12-16, 2022)
1. Forex market and exchange rates:
During the week of September 12-16, 2022, the forex market and the USD/VND exchange rates were relatively stable, with the exchange rates increasing slightly, and the market liquidity was ensured for smooth operations. On September 12, 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 23,390/ 23,670 per USD, down by 20 VND per USD as compared with the rates of the last working day of the previous week (September 9, 2022). By end of September 16, the exchange rates were quoted at VND 23,515/23,795 per USD, up by 125 VND per USD as compared with the rates of September 12, 2022.
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 1,327,617 billion, an average of VND 265,523 billion per day, an increase of VND 25,808 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 233,998 billion, an average of VND 46,800 billion per day, an increase of VND 2,756 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 89% and 5% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 84% and 10% of the total amount of USD transactions respectively.
2.2. Inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates decreased slightly in most of the terms as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were down by 1.43 percentage points p.a., 1.21 percentage points p.a., and 0.43 percentage point p.a. respectively, to 4.22% p.a., 4.45% p.a., and 5.04% p.a. respectively.
- For transactions in USD: The average inter-bank interest rates experienced opposite movements as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight and 1-week terms decreased by 0.02 percentage points p.a. and 0.01 percentage point p.a., to 2.39% p.a. and 2.56% p.a. respectively. The average inter-bank interest rates for 1-month term increased by 0.19 percentage points p.a., to 3.13% p.a.
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 |
4.22 |
4.45 |
4.40 |
5.04 |
5.79 |
7.45 |
8.04 |
USD |
2.39 |
2.56 |
2.79 |
3.13 |
3.51 |
5.17 |
- |
Translated by Le Hang