Developments in Money Market and Inter-bank Market (May 8-12, 2023)
1. Forex market and exchange rates:
During the week of May 8-12, 2023, the USD/VND exchange rates increased slightly, and the market liquidity was ensured for smooth operations. On May 8, 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 23,290/23,630 per USD, up by 10 VND per USD as compared with the rates of the last working day of the previous week (May 5, 2023). By end of May 12, the exchange rates were quoted at VND 23,300/23,640 per USD, up by 10 VND per USD as compared with the rates of May 8.
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 1,163,379 billion, an average of VND 232,676 billion per day, a decrease of VND 13,834 billion per day as compared to the previous week (April 24-28, 2023); meanwhile the transaction amount in USD was equivalent to VND 372,341 billion, an average of VND 74,468 billion per day, an increase of VND 7,317 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 87% 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 80% and 14% 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 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 0.17 percentage points, 0.33 percentage points, and 0.17 percentage points respectively, to 4.94% p.a., 4.99% p.a., and 5.54% p.a. respectively.
- For transactions in USD: The average inter-bank interest rates increased as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were up by 0.22 percentage points, 0.18 percentage points, and 0.31 percentage points respectively, to 4.84% p.a., 4.84% p.a., and 5.23% 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 |
4.94 |
4.99 |
4.85 |
5.54 |
6.29 |
8.15 |
8.60 |
USD |
4.84 |
4.84 |
4.95 |
5.23 |
5.38 |
5.98 |
5.59 |
Translated by Le Hang