Interbank interest rates in dong increase for almost all terms

The interbank average interest rate in US dollar in the week from September 24 – 30 fell from the previous week. The trading turnover in US dollar surged over 14% week-on-week whereas the trading value in dong slipped slightly w-o-w.
According to the State Bank of Vietnam (SBV)’s report on banking operations in the week between September 24 and 30, the interbank trading turnover as of September 28 reached some 114.709 trillion dong and $3.014 billion, averaging at 22.942 trillion dong and $602 million per day.

In comparison with the previous week, the trading turnover in dong decreased nearly 2% whereas the figure in US dollar surged over 14%.

In week, transactions occurred mainly in short terms, of which, the overnight trading turnover in dong reached 33.753 trillion dong, or 30% of the total trading turnover in the market and in US dollar at $1.613 billion, or 53.5% of the total figure.

The highest interbank interest rate in dong was 18% p.a. and the lowest was at 8% p.a. (excluding the non-term interest rate).

As reported by the central bank, as of September 21, the interbank average interest rate in dong tended to increase in almost terms by 0.02-0.58% p.a. Particularly, the interest rate for 1-month term fell 0.11%.

The overnight average interest rate this week was at 12.7% p.a., down 0.51% from previous week. The average interest rate for remaining terms remained at high level, ranging between 13.36% and 13.93% p.a. (excluding the non-term interest rate).

As for transactions in US dollar, the average interest rate tended to increase for terms of 1-month and 3-months and decrease for remaining terms.

The overnight average interest rate was at 0.58% p.a., down 0.01% w-o-w. Meanwhile, the interest rate for remaining terms hovered around 1.21-2.59% p.a. In week, there were no transactions for 12-month term.
Source:Vietbiz24.com

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial, Vietnam interest rates