Developments in Money Market and Inter-bank Market (June 26-30, 2023)
1. Forex market and exchange rates:
During the week of June 26-30, 2023, the exchange rates were on an upward trend; however, the forex market was still operating smoothly. On June 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 23,360/23,700 per USD, up by 10 VND per USD as compared with the rates of the last working day of the previous week (June 23, 2023). By end of June 30, the exchange rates were quoted at VND 23,410/23,750 per USD, up by 50 VND per USD as compared with the rates of June 26, 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 1,378,846 billion, an average of VND 275,769 billion per day, an increase of VND 50,026 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 319,252 billion, an average of VND 63,850 billion per day, an increase of VND 7,941 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 80% and 14% 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 17% 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 rate for the overnight term decreased by 0.1 percentage point p.a., to 0.65% p.a., while the average inter-bank interest rates for 1-week and 1-month terms increased by 0.31 percentage points p.a. and 0.02 percentage points p.a., to 1.33% p.a. and 3.8% p.a. respectively.
- 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 at 4.83% p.a., 4.87% p.a., and 5.10% 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 |
0.65 |
1.33 |
1.44 |
3.80 |
5.05 |
7.01 |
8.10 |
USD |
4.83 |
4.87 |
5.01 |
5.10 |
5.35 |
6.34 |
5.96 |
Translated by Le Hang.