Developments in Money Market and Inter-bank Market (September 4-8, 2023)
1. Forex market and exchange rates:
During the week of September 4-8, 2023, the foreign exchange rates were relatively stable; the liquidity was ensured for smooth operations; and the legitimate demands of foreign currencies were fully met. On September 4, 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 23.900/24.240 per USD, unchanged as compared with the rates of the last working day of the previous week (August 31, 2023). By end of September 8, the exchange rates were quoted at VND 23,920/24,260 per USD, up by 20 VND per USD as compared with the rates of September 4, 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 892,983 billion, an average of VND 223,246 billion per day, a decrease of VND 22,685 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 273,399 billion, an average of VND 68,350 billion per day, an increase of VND 228 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 85% and 5% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 74% and 20% 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 with the interest rates of the previous week. Specifically, the average inter-bank interest rates for overnight and 1-week terms increased slightly by 0.02 percentage points p.a. and 0.12 percentage points p.a. respectively, to 0.18% p.a. and 0.39% p.a. respectively; meanwhile, the average inter-bank interest rate for 1-month term decreased by 0.15 percentage points p.a., to 1.44% p.a.
- For transactions in USD: The average inter-bank interest rates for most terms decreased. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms decreased by 0.01 percentage point p.a., 0.05 percentage points p.a., and 0.01 percentage point p.a. respectively, to 5.04% p.a., 5.05% p.a., and 5.30% 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 |
0.18 |
0.39 |
0.55 |
1.44 |
3.09 |
5.54 |
7.20 |
USD |
5.04 |
5.03 |
5.12 |
5.30 |
5.82 |
6.03 |
5.96 |
Translated by Le Hang.