Developments in Money Market and Inter-bank Market (June 19-23, 2023)
1. Forex market and exchange rates:
During the week of June 19-23, 2023, the foreign exchange market was relatively stable. On June 19, 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 23,350/23,690 per USD, down by 10 VND per USD as compared with the rates of the last working day of the previous week (June 16, 2023). By end of June 23, the exchange rates were quoted at VND 23,350/23,690 per USD, unchanged as compared with the rates of June 19, 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 1,128,717 billion, an average of VND 225,743 billion per day, a decrease of VND 4,929 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 279,545 billion, an average of VND 55,909 billion per day, a decrease of VND 10,626 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 83% and 7% 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 13% 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 in most of the terms as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight and 1-week terms decreased by 0.89 percentage points, to 0.75% p.a. and 1.02% p.a. respectively. The average inter-bank interest rate for 1-month term increased by 0.20 percentage points, to 3.78% 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 at 4.84% p.a., 4.86% p.a., and 5.17% 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 |
0.75 |
1.02 |
1.56 |
3.78 |
4.97 |
6.67 |
8.24 |
USD |
4.84 |
4.86 |
4.94 |
5.17 |
5.59 |
5.55 |
5.91 |
Translated by Le Hang.