Banks raise US dollar trading interest rate at average 2% pa between June 4 and 10

Average US dollar trading interest rate on the interbank market fell to below 1.5% per annum applied on the terms of shorter 1 month, particularly the 3-month interest rate stood at 2.83% pa, six months at 3.47% a year.
The trade on the financial market between June 4 and 10 was reported by the State Bank of Vietnam, the country’s central bank.

Accordingly, the non-production lending rate of the dong peaked at 25% pa, up 2% against the previous week while US dollar loan rate was unchanged compared with late May.

Total trading value on the interbank market till June 8 was estimated at around 114.384 trillion dong and $3.671 billion, averaging 22.877 trillion dong and $743 million a day.

Transactions of the dong mainly were focused on overnight and one-week loans with respective volume of 75.234 trillion dong, accounting for 66% of total figure. Meanwhile, those of US dollar in both terms achieved $2.569 billion, or 70%.

For the dong, the average overnight interest rate by June 8 stayed at 12.81% per annum, rising by 0.78% from the end of May while that of remaining terms ranged between 13.25% and 13.95% per annum.

For US dollar, the overnight rate on 3-month term rose 0.69% to 2.83% a year from 2.14% a year. In the term of six months alone, the interest rate fell 0.14% to 3.47% pa. Overnight loan rate was 0.58% a year, +0.8%. – Vietbiz24

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial