Developments in Money Market and Inter-bank Market (October 16-20, 2023)
1. Forex market and exchange rates:
During the week of October 16-20, 2023, the exchange rates were on an upward trend. On October 16, 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 24,290/24,630 per USD, unchanged as compared with the rates of the last working day of the previous week (October 13, 2023). By end of October 20, the exchange rates were quoted at VND 24,360/24,700 per USD, up by 70 VND per USD as compared with the rates of October 16, 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 1,282,293 billion, an average of VND 256,459 billion per day, an increase of VND 2,628 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 332,069 billion, an average of VND 66,414 billion per day, a decrease of VND 9,865 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 87% and 6% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 73% and 23% 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 rates of the previous week. Specifically, the average inter-bank interest rates for overnight and 1-week terms increased by 0.4 percentage points p.a. and 0.42 percentage points p.a. respectively, to 0.9% p.a. and 1.11% p.a. respectively; meanwhile the average inter-bank interest rate for 1-month term decreased by 0.11 percentage points p.a. to 1.56% p.a.
- For transactions in USD: The average inter-bank interest rates were relatively stable, with 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 unchanged at 5.05% p.a., 5.06% p.a., and 5.39% 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 |
0.90 |
1.11 |
1.23 |
1.56 |
3.31 |
5.39 |
7.10 |
USD |
5.05 |
5.06 |
5.19 |
5.39 |
5.48 |
6.14 |
6.08 |
Translated by Le Hang.