Overnight interest rate up to 15.5pct p.a, net withdrawal at 13tr dong on OMO

This week (October 3 to 7), the State Bank of Vietnam (SBV) made a net withdrawal of 13 trillion dong on open market operations (OMO) while the overnight interest rate jumped to 15.5% per annum (p.a.), Vietbiz24.com cited data from SBV’s website.
Accordingly, in five trading sessions from October 3 to 7, 2011, the central bank pumped 14 trillion dong on OMO at the interest rate of 14% p.a. for 14-day term and withdrew 27 trillion dong.

Thus, in week, the central bank posted a net withdrawal of 13 trillion dong on OMO after a net injection of six trillion dong in previous week and 28 trillion dong in September.

In the session on October 7, right after the central bank’s decision to raise some key rates, the overnight interbank interest rate climbed to 14.5-15.5% p.a., from 12.5-13.5% p.a. on Oct. 6. The interest rate for 1-week term also increased to 15% p.a. from 14-14.6% p.a. previously.

As prescribed by the central bank, as from October 10, the refinancing rate will be raised to 15% p.a. and the overnight lending interest rate in interbank e-payment will also increase to 16% p.a. from 14% p.a.

According to SBV, this move is said to primarily ensure the reasonableness of the relationship between the central bank’s key rates and its role will be the last lender to improve the efficiency of monetary policy and regulate the market interest rate.

Source: Vietbiz24.com

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

Posted by VBN on Oct 10 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