Lending term on OMO suddenly prolonged to 14 days

On September 19, the State Bank of Vietnam (SBV) pumped two trillion dong on open market operations (OMO) with the lending term being prolonged of up to 14 days from previously 7-day term and interest rate of 14%.
Thus, this is the first time the lending term on OMO has changed after being maintained at 7-day term since the end of April 2011 to September 16.

Together with an injection of two trillion dong on OMO, the central bank also withdrew one trillion dong, leading a net injection of one trillion dong on OMO in this week’s first trading session, after a net withdrawal of 3.019 trillion dong in previous week.

On September 19, the overnight interbank interest rate remained stable at less than 13% per annum.

(US$1 = 20,830.00 dong)

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Sep 20 2011. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry