Developments in Money Market and Inter-bank Market (January 29 - February 2, 2024)
1. Forex market and exchange rates:
During the week of January 29 - February 2, 2024, the exchange rates were on a downward trend. On January 29, 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 24,375/24,715 per USD, down by 50 VND per USD as compared with the rates of the last working day of the previous week (January 26, 2024). By end of January 29, the exchange rates were quoted at VND 24,160/24,500 per USD, down by 215 VND per USD as compared with the rates of January 22, 2024.
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 1,590,714 billion, an average of VND 318,143 billion per day, an increase of VND 32,994 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 251,061 billion, an average of VND 50,212 billion per day, a decrease of VND 4,507 billion per day as compared to the previous week.
The transactions in VND were mostly for overnight term, accounting for 89% of the total amount of VND transactions; transactions for 1-week to 3-month terms accounted for 1% to 3% of the total amount of VND transactions respectively. There was no transaction recorded for 12-month term. The transactions in USD were mostly for overnight term, accounting for 80% of the total amount of VND transactions, followed by the transactions for 1-week and 2-week terms, accounting for 12% and 6% 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 increased. The average inter-bank interest rate for 2-week term experienced the highest increase of 1.39 percentage points p.a., followed by the average inter-bank interest rates for 1-month and overnight terms with increases of 0.53 percentage points p.a. and 0.52 percentage points 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 2-week terms were at 5.21% p.a., 5.25% p.a., and 5.27% 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 |
0.64 |
0.56 |
1.83 |
1.48 |
2.92 |
4.31 |
5.49 |
USD |
5.21 |
5.25 |
5.27 |
5.38 |
5.48 |
5.96 |
5.55 |
Translated by Le Hang.