Developments in Money Market and Inter-bank Market (February 19-23, 2024)
1. Forex market and exchange rates:
During the week of February 19-23, 2024, the exchange rates were on an upward trend. On February 19, 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 24,360/24,700 per USD, up by 20/20 VND per USD as compared with the rates of the last working day of the previous week (February 16, 2024). By end of February 23, the exchange rates were quoted at VND 24,450/24,790 per USD, up by 90/90 VND per USD as compared with the rates of February 19, 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 1,812,523 billion, an average of VND 362,505 billion per day, an increase of VND 44,362 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 344,315 billion, an average of VND 68,863 billion per day, an increase of VND 18,651 billion per day as compared to the working week right before the Tet Holidays.
The transactions in VND were mostly for overnight and 1-week terms, accounting for 89% and 6% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight and 1-week terms, accounting for 75% and 18% of the total amount of USD transactions respectively.
2.2. Inter-bank interest rates:
- For transactions in VND: In comparison with those of the week before the Tet Holidays, the average inter-bank interest rates for most terms increased remarkably. The average inter-bank interest rates for overnight and 1-week terms experienced the highest increases of 2.38 percentage points p.a. and 2.44 percentage points p.a., to 3.02% p.a. and 3.0% p.a. respectively.
- For transactions in USD: The average inter-bank interest rates barely changed as compared to those of the week before the Tet Holidays. The average inter-bank interest rates for overnight,1-week and 2-week terms were at 5.22% p.a., 5.26% p.a., and 5.33% 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 |
3.02 |
3.00 |
2.35 |
2.26 |
3.19 |
4.27 |
5.35 |
USD |
5.22 |
5.26 |
5.33 |
5.40 |
5.52 |
6.11 |
5.80 |
Translated by Le Hang.