Developments in Money Market and Inter-bank Market (August 21-25, 2023)
1. Forex market and exchange rates:
During the week of August 21-25, 2023, the forex market was relatively stable; the exchange rates were on an upward trend; the liquidity was ensured for smooth operations; and the legitimate demands of foreign currencies were fully met. On August 21, 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 23,630/23,970 per USD, unchanged as compared with the rates of the last working day of the previous week (August 18, 2023). By end of August 25, the exchange rates were quoted at VND 23,810/24,150 per USD, up by 180 VND per USD as compared with the rates of August 21, 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 1,036,544 billion, an average of VND 207,309 billion per day, a decrease of VND 141 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 322,452 billion, an average of VND 64,490 billion per day, an increase of VND 4,201 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 84% and 3% 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 16% 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. Specifically, the average inter-bank interest rates for overnight term decrease by 0.03 percentage points p.a., to 0.17% p.a.; meanwhile, the average inter-bank interest rates for 1-week and 1-month terms increased by 0.02 percentage points p.a. and 0.07 percentage points p.a. respectively, to 0.42% p.a. and 1.58% p.a. respectively;
- For transactions in USD: The average inter-bank interest rates experienced opposite movements. Specifically, the average inter-bank interest rates for overnight and 1-month terms decreased by 0.01 percentage point p.a. and 0.21 percentage points p.a. respectively, to 5.03% p.a. and 5.1% p.a. respectively; meanwhile the average inter-bank interest rate for 1-week term increased by 0.01 percentage point p.a., to 5.07% 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 |
0.17 |
0.42 |
0.56 |
1.58 |
3.71 |
6.70 |
6.03 |
USD |
5.03 |
5.07 |
5.16 |
5.10 |
5.51 |
6.37 |
6.09 |
Translated by Le Hang.