Developments in Money Market and Inter-bank Market (February 27 – March 3, 2023)
1. Forex market and exchange rates:
During the week of February 27 – March 3, 2023, the foreign exchange rates experienced a downward trend. On February 27, 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 23,650/23,990 per USD, up by 20 VND per USD as compared with the rates of the last working day of the previous week (February 24, 2023). By end of March 3, the exchange rates were quoted at VND 23,550/23,890 per USD, down by 100 VND per USD as compared with the rates of February 27, 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 1,065,636 billion, an average of VND 213,127 billion per day, an increase of VND 12,140 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 270,668 billion, an average of VND 54,134 billion per day, an increase of VND 8,786 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 88% 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 82% 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 fluctuated as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight and 1-week terms increased by 0.35 percentage points p.a. and 0.44 percentage points p.a., to 5.87% p.a. and 6.32% p.a. respectively, while the average inter-bank interest rate for 1month term decreased by 0.02 percentage points p.a. to 7.17% p.a.
- For transactions in USD: The average inter-bank interest rates were 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., 4.52% p.a., and 4.77% 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 |
5.87 |
6.32 |
6.19 |
7.17 |
7.94 |
9.74 |
- |
USD |
4.46 |
4.52 |
4.67 |
4.77 |
5.14 |
6.35 |
- |
Translated by Le Hang.