Developments in Money Market and Inter-bank Market (April 03 - 07, 2023)
1. Forex market and exchange rates:
During the week of April 03 - 07, 2023, the foreign exchange market was relatively stable, and the foreign exchange rates experienced slight fluctuations toward both directions. On April 03, 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 23,310/23,650 per USD, up by 20 VND per USD as compared with the rates of the last working day of the previous week (March 31, 2023). By end of April 07, the exchange rates were quoted at VND 23,280/23,620 per USD, down by 30 VND per USD as compared with the rates of April 03, 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 1,060,992 billion, an average of VND 212,198 billion per day, a decrease of VND 62,132 billion per day as compared to the previous week (March 27 - 31, 2023); meanwhile the transaction amount in USD was equivalent to VND 323,191 billion, an average of VND 64,638 billion per day, a decrease of VND 1,322 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 88% 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 83% 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 in most of the terms as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms increased by 2.4 percentage points, 2 percentage points, and 0.92 percentage points respectively, to 3.42% p.a., 3.66% p.a., and 5.37% p.a. respectively.
- For transactions in USD: 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-week terms decreased by 0.01 percentage point and 0.02 percentage points respectively, to 4.61% p.a. and 4.6% p.a. respectively. Meanwhile, the average inter-bank interest rate for 1-month term increased by 0.22 percentage points to 4.93% p.a.
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 |
3.42 |
3.66 |
3.38 |
5.37 |
6.53 |
8.54 |
8.92 |
USD |
4.61 |
4.60 |
4.76 |
4.93 |
6.20 |
5.49 |
5.60 |
Translated by LK.