Developments in Money Market and Inter-bank Market (May 22-26, 2023)
1. Forex market and exchange rates:
During the week of May 22-26, 2023, the USD/VND exchange rates were on a slight upward trend, and the market liquidity was ensured for smooth operations. On May 22, 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, down by 10 VND per USD as compared with the rates of the last working day of the previous week (May 19, 2023). By end of May 26, the exchange rates were quoted at VND 23,320/23,660 per USD, up by 10 VND per USD as compared with the rates of May 22, 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 1,156,453 billion, an average of VND 231,291 billion per day, an increase of VND 6,473 billion per day as compared to the previous week (May 15-19, 2023); meanwhile the transaction amount in USD was equivalent to VND 358,658 billion, an average of VND 71,732 billion per day, a decrease of VND 3,188 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 85% 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 69% and 24% 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, 1-week and 1-month terms decreased by 0.49 percentage points, 0.44 percentage points, and 0.22 percentage points respectively, to 4.28% p.a., 4.34% p.a., and 4.83% p.a. respectively
- 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 4.84% p.a., 4.86% p.a., and 5.27% 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 |
4.28 |
4.34 |
4.43 |
4.83 |
6.16 |
7.99 |
8.71 |
USD |
4.84 |
4.86 |
5.01 |
5.27 |
5.21 |
6.16 |
5.60 |
Translated by Le Hang