Weekly Bulletin on Banking Operations (March 16-20, 2020)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites (at the end of the day) increased by VND 20-60 per USD per day, particularly on Thursday (March 19), the exchange rates were up by VND 105/125 per USD for both buying and selling rates as compared to the previous day, to VND 23,335/23,495 against the USD. At the end of the week, the exchange rates continued to increase and were quoted at VND 23,370 / 23,530 against the USD (up by VND 220/240 per USD for both buying and selling rates as compared to the last day of the previous week (March 13, 2020)).
2. Mobilization and lending interest rates:
2.1. Mobilization interest rates:
- The mobilization interest rates in VND: The common rates were between 0.1% p.a – 0.5% p.a for demand and below 1-month term deposits, 4.3% p.a – 4.75% p.a for 1-month to below 6-month terms, 5.3% p.a – 6.8% p.a for 6-month to below 12-month terms, and 6.6% – 7.4% p.a for 12-month plus terms.
- The mobilization interest rates in USD: The common mobilization interest rate in USD was 0% p.a for both individuals’ and institutions’ deposits.
2.2. Lending rates:
- The lending interest rates in VND: The common average rates were between 6.0% p.a – 9.0% p.a for short-term loans; 9.0% p.a – 11.0% p.a for medium and long-term loans.
- The lending interest rates in USD: The common rates were between 3.0% p.a – 6.0% p.a. The rates were 3.0% p.a – 4.7% p.a for short-term loans, and 4.5% p.a – 6.0% p.a for medium and long-term loans.
3. Inter-bank transaction operations:
3.1. 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 321,883 billion, an average of VND 64,377 billion per day, an increase of VND 8,019 billion per day as compared to the previous week (March 09-13, 2020); meanwhile the transaction amount in USD was equivalent to VND 177,595 billion, an average of VND 35,519 billion per day, an increase of VND 3,092 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 71% and 11% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 70% and 8% of the total amount of USD transactions respectively.
3.2. The average inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates decreased for most terms as compared to the previous week, except for the interest rate for 3-month term, which experienced a slight increase.
- For transactions in USD: The average inter-bank interest rates had slight decreases for most terms as compared to the previous week.
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 |
2.04 |
2.31 |
2.41 |
2.78 |
3.29 |
4.02 |
5.53 |
USD |
0.88 |
0.87 |
0.92 |
1.27 |
1.55 |
1.84 |
2.21 |
Translated by VA