Developments in Money Market and Inter-bank Market (August 28-31, 2023)
1. Forex market and exchange rates:
During the week of August 28-31, 2023, the foreign exchange rates fluctuated towards both directions; the liquidity was ensured for smooth operations; and the legitimate demands of foreign currencies were fully met. On August 28, 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 23.920/24.260 per USD, up by 110 VND per USD as compared with the rates of the last working day of the previous week (August 25, 2023). By end of August 31, the exchange rates were quoted at VND 23,900/24,240 per USD, down by 20 VND per USD as compared with the rates of August 28, 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 972,639 billion, an average of VND 243,160 billion per day, an increase of VND 35,851 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 272,487 billion, an average of VND 68,122 billion per day, an increase of VND 3,631 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 58% and 34% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 51% and 39% 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 and 1-week terms decreased by 0.01 percentage point p.a. and 0.15 percentage points p.a. respectively, to 0.16% p.a. and 0.27% p.a. respectively; meanwhile, the average inter-bank interest rate for 1-month term increased by 0.01 percentage point p.a., to 1.59% p.a.
- For transactions in USD: The average inter-bank interest rates for most terms increased. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms increased by 0.02 percentage points p.a., 0.01 percentage point p.a., and 0.21 percentage points p.a. respectively, to 5.05% p.a., 5.08% p.a. and 5.31% 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 |
0.16 |
0.27 |
0.59 |
1.59 |
3.51 |
4.80 |
6.40 |
USD |
5.05 |
5.08 |
5.19 |
5.31 |
5.52 |
6.04 |
6.02 |
Translated by Le Hang.