Developments in Money Market and Inter-bank Market (September 18-22, 2023)
1. Forex market and exchange rates:
During the week of September 18-22, 2023, the foreign exchange rates were on an upward trend; the liquidity was ensured for smooth operations; and the legitimate demands for foreign currencies were fully met. On September 18, 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 24,190/24,530 per USD, up by 105 VND per USD as compared with the rates of the last working day of the previous week (September 15, 2023). By end of September 22, the exchange rates were quoted at VND 24,190/24,530 per USD, unchanged as compared with the rates of September 18, 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 1,114,745 billion, an average of VND 222,949 billion per day, a decrease of VND 4,144 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 297,931 billion, an average of VND 59,586 billion per day, a decrease of VND 2,758 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 84% 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 77% and 19% 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-month terms both decreased by 0.01 percentage point p.a., to 0.15% p.a. and 1.14 p.a. respectively. Meanwhile the average inter-bank interest rate for 1-week term increased by 0.02 percentage points p.a., to 0.34% p.a.
- For transactions in USD: 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-month terms decreased by 0.01 percentage point p.a. and 0.04 percentage points p.a. respectively, to 5.03% p.a. and 5.3% p.a. respectively. Meanwhile, the average inter-bank interest rate for 1-week term increased by 0.01 percentage point p.a., to 5.06% 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 |
0.15 |
0.34 |
0.45 |
1.14 |
3.23 |
5.27 |
6.83 |
USD |
5.03 |
5.06 |
5.14 |
5.30 |
5.51 |
6.16 |
5.99 |
Translated by Le Hang.