Developments in Money Market and Inter-bank Market (February 20 - 24, 2023)
1. Forex market and exchange rates:
During the week of February 20 – 24, 2023, the foreign exchange rates experienced an upward trend. On February 20, 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 23,560/23,900 per USD, down by 80 VND per USD as compared with the rates of the last working day of the previous week (February 17, 2023). By end of February 24, the exchange rates were quoted at VND 23,630/23,970 per USD, up by 70 VND per USD as compared with the rates of February 20, 2023.
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 1,004,938 billion, an average of VND 200,988 billion per day, a decrease of VND 48,747 billion per day as compared to the previous week (February 13 – 17, 2023); meanwhile the transaction amount in USD was equivalent to VND 226,739 billion, an average of VND 45,348 billion per day, a decrease of VND 25,069 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 88% and 6% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 80% and 12% 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 as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were 5.52% p.a., 5.88% p.a. and 7.19% p.a. respectively.
- For transactions in USD: The average inter-bank interest rates was relatively stable and experienced slight fluctuations around the rates of the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were stable at 4.46% p.a., 4.5% p.a., and 4.71% 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 |
5.52 |
5.88 |
5.44 |
7.19 |
7.78 |
9.72 |
- |
USD |
4.46 |
4.50 |
4.64 |
4.71 |
5.15 |
6.20 |
- |
Translated by LK.