Developments in Money Market and Inter-bank Market (July 29-August 2, 2024)
1. Forex market and exchange rates:
During the week of July 29-August 2, 2024, the exchange rates were on a downward trend. On July 29, 2024, 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 25,115/25,455 per USD, down by 6 VND per USD as compared to the rates of the last working day of the previous week (July 26, 2024). By the end of August 2, the exchange rates were quoted at VND 25,040/25,380 VND per USD, a decrease of 75 VND per USD as compared to the rates of July 29, 2024.
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 VND in the inter-bank market during the week reached approximately VND 1,946,734 billion, an average of VND 389,347 billion per day, an increase of VND 30,302 billion per day as compared to the previous week. Meanwhile, the transaction amount in USD was equivalent to VND 357,213 billion, an average of VND 71,443 billion per day, an increase of VND 7,617 billion per day as compared to the previous week.
Regarding maturities, most VND transactions were for overnight term (accounting for 89.51% of the total transaction amount, equivalent to VND 1,743 trillion), followed by transactions for 1-week and 2-week terms, accounting for 5.22% and 2.41% of the total transaction amount respectively, equivalent to VND 101.6 trillion and VND 46.9 trillion respectively. For USD transactions, overnight and 1-week terms accounted for 85.76% and 10.95% of the total amount of transactions respectively.
2.2. Inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates for most terms increased as compared to the previous week. The average inter-bank interest rates for overnight, 1-week, 2-week, 1-month, 3-month terms decreased by 0.10 percentage points, 0.04 percentage points, 0.05 percentage points, 0.18 percentage points and 0.09 percentage points respectively. Meanwhile, the average interest rates for 3-week, 2-month and 6-month terms increased by 0.06 percentage points, 0.18 percentage points, and 0.60 percentage points respectively.
- For transactions in USD: The average inter-bank interest rates for overnight and 1-week terms remained unchanged at 5.31% p.a. and 5.35% p.a. respectively. The average inter-bank interest rates for 2-week and 3-month terms increased by 0.02 percentage points and 0.08 percentage points respectively. The interest rates for 1-month, 2-month and 6-month terms decreased by 0.08 percentage points, 0.02 percentage points, and 0.09 percentage points respectively.
The specific average inter-bank interest rates were as follows:
Overnight |
1-week |
2-week |
1-month |
3-month |
6-month |
9-month |
|
VND |
4.64 |
4.85 |
4.84 |
4.69 |
5.29 |
6.04 |
- |
USD |
5.31 |
5.35 |
5.40 |
5.20 |
5.58 |
5.63 |
5.24 |
Translated by Le Hang