Developments in Money Market and Inter-bank Market (December 18-22, 2023)
1. Forex market and exchange rates:
During the week of December 18-22, 2023, the exchange rates were on a downward trend. On December 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 24,140/24,480 per USD, up by 70 VND per USD as compared with the rates of the last working day of the previous week (December 15, 2023). By end of December 22, the exchange rates were quoted at VND 24,060/24,400 per USD, down by 80 VND per USD as compared with the rates of December 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 VND in the inter-bank market within the week reached approximately VND 1,486,216 billion, an average of VND 297,243 billion per day, an increase of VND 19,095 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 315,508 billion, an average of VND 63,102 billion per day, a decrease of VND 213 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 86% and 4% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 63% and 31% of the total amount of USD transactions respectively.
2.2. Inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates for most terms were on an upward trend as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms increased by 0.03 percentage points p.a., 0.08 percentage points p.a., and 0.32 percentage points p.a. respectively, to 0.18% p.a., 0.37% p.a., and 1.14% p.a. respectively.
- 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 remained at 5.03% p.a., 5.06% p.a., and 5.24% 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 |
0.45 |
1.11 |
1.46 |
3.31 |
5.22 |
6.06 |
USD |
5.03 |
5.06 |
5.17 |
5.24 |
5.43 |
6.30 |
5.68 |
Translated by Le Hang.