Developments in Money Market and Inter-bank Market (December 26 - 30, 2022)
1. Forex market and exchange rates:
During the week of December 26 - 30, 2022, the foreign exchange rates experienced a downward trend. On December 26, 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 23,480/23,800 per USD, up by 50 VND per USD as compared with the rates of the last working day of the previous week (December 23, 2022). By end of December 30, the exchange rates were quoted at VND 23,410/23,730 per USD, down by 70 VND per USD as compared with the rates of December 26, 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 1,359,702 billion, an average of VND 271,940 billion per day, an increase of VND 4,219 billion per day as compared to the previous week (December 19 - 23, 2022); meanwhile the transaction amount in USD was equivalent to VND 255,437 billion, an average of VND 51,087 billion per day, a decrease of VND 16,061 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 60% and 35% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 61% and 34% of the total amount of USD transactions respectively.
2.2. Inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates experienced opposite movements in different terms as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight and 1-month terms decreased by 0.75 percentage points and 1.71 percentage points respectively, to 3.17% p.a. and 6.84% p.a. respectively. Meanwhile, the average inter-bank interest rate for 1-week term remained at 4.71% p.a.
- 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 4.19% p.a., 4.24% p.a., and 4.58% 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 |
3.17 |
4.71 |
5.55 |
6.84 |
9.18 |
10.07 |
9.61 |
USD |
4.19 |
4.24 |
4.47 |
4.58 |
5.12 |
5.30 |
- |
Translated by LK.