Developments in Money Market and Inter-bank Market (June 5-9, 2023)
1. Forex market and exchange rates:
During the week of June 5-9, 2023, the forex market remained stable; the USD/VND exchange rates fluctuated in both directions. On June 5, 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 23,330/23,670 per USD, up by 20 VND per USD as compared with the rates of the last working day of the previous week (June 2, 2023). By end of June 9, the exchange rates were quoted at VND 23,310/23,650 per USD, down by 20 VND per USD as compared with the rates of June 5, 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 1,053,945 billion, an average of VND 210,789 billion per day, a decrease of VND 44,159 billion per day as compared to the previous week (May 29-June 2, 2023); meanwhile the transaction amount in USD was equivalent to VND 311,915 billion, an average of VND 62,383 billion per day, an increase of VND 922 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 89% 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 83% 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 experienced opposite movements as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight and 1-week terms decreased by 0.55 percentage points and 0.58 percentage points respectively, to 3.38% p.a. and 3.46% p.a. respectively. Meanwhile, the average inter-bank interest rate for 1-month term increased by 0.05 percentage points to 4.85% 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 stable at 4.86% p.a., 4.87% p.a., and 5.2% 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 |
3.38 |
3.46 |
3.68 |
4.85 |
5.60 |
7.11 |
7.34 |
USD |
4.86 |
4.87 |
4.95 |
5.20 |
5.43 |
6.19 |
5.74 |
Translated by Le Hang.