Developments in Money Market and Inter-bank Market (January 20-24, 2025)
1. Forex market and exchange rates
On January 20, 2025, 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 25,140/25,500 per USD, a decrease of 10 VND per USD as compared with the rates of the last working day of the previous week (January 17, 2025). By the end of January 24, the exchange rates were quoted at VND 24,800/25,300 per USD, a decrease of 340/200 VND per USD as compared with the rates of January 20.
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 during the week reached VND 2,637,721 billion, an average of VND 527,544 billion per day, an increase of VND 119,832 billion per day as compared to the previous week. Meanwhile, the transaction amount in USD was equivalent to VND 378,208 billion, an average of VND 75,642 billion per day, a decrease of VND 1,017 billion per day as compared to the previous week.
Regarding the maturities, most VND transactions were for overnight and 2-week terms, accounting for 63% and 35% of the total amount of transactions respectively. For USD transactions, overnight and 2-week terms accounted for 60% and 35% of the total amount of transactions respectively.
2.2. Inter-bank interest rates
For transactions in VND: The average inter-bank interest rates for most terms experienced small decreases. Specifically, the average inter-bank interest rates for overnight, 2-week and 1-month terms experienced decreases ranging from 0.03 to 0.05 percentage points, to 4.17% p.a., 4.77% p.a., and 4.88% p.a. respectively.
For transactions in USD: As compared to the previous week, the average inter-bank interest rates for most terms experienced small decreases. Specifically, the average inter-bank interest rate for overnight term remained unchanged at 4.31% p.a., while the average inter-bank interest rates for 2-week and 1-month terms decreased by 0.09% and 0.07% respectively, to 4.36% p.a. and 4.46% p.a. respectively.
The specific average inter-bank interest rates were as follows:
Overnight |
1-week |
2-week |
1-month |
3-month |
6-month |
9-month |
|
VND |
4.17 |
4.82 |
4.77 |
4.88 |
5.19 |
6.21 |
6.04 |
USD |
4.31 |
4.35 |
4.36 |
4.46 |
4.48 |
- |
- |
Translated by HY