Slight increase in trading on interbank market

Total trading value on the interbank market in the week from July 16th to 22th was estimated at approximately 101.892 trillion dong and $1.597 billion, posting an average of 20.378 trillion dong and $319 million per day, according to State Bank of Vietnam (SBV)’s report on its website today.

This week still saw a slight increase in total trading value by 1.098 trillion dong against the previous week, while US dollar trading revenue also decreased $60 million.

The dong transactions mainly incurred in short-term loans (overnight and 1 week and 2 weeks). Total overnight transactions in dong reached 38.252 trillion dong, accounting for 37.5 percent of the week’s total trading value, while the US dollar trading value was estimated at $776 million, making up 52 percent of the week’s total value.

This week, the average dong interest rate still rose slightly in most of short terms (overnight, one and two weeks, with an additional increase of from 0.06 percent to 0.16 percent per year. The interest rate of 12 month terms and call deposits increased 1.53 percent and 1.52 percent per year respectively.

The average overnight rate increased by 0.06 percent compared with that of last week, now standing at 6.66 percent per year. The average interest rate of short term (less than 3 months) ranged from 6.66 percent to 8.59 percent per annum. This week did not see any transactions of six month terms.

The highest lending rate was 12 percent per year, while the lowest lending rate was 5 percent per year (not including call interest rates).

As for transactions in US dollars, the average interest rates of most terms decreased slightly, with the sharpest drop at three and six months, from 3.15 percent down to 1.14 percent and from 3.45 percent down to 1.35 percent respectively.

The interest rate of remaining terms decreased from 1.14 to 0.61 percent. However, the rate of two weeks rose 0.61 percent against the previous week. The overnight interest rate stood at 0.42 percent per year, down 0.18 percent against the previous week. The interest rate of remaining terms ranged from 0.56 to 1.6 percent per year. This week, no transaction in US dollar was carried out.

The central bank said that this week, the monetary market remained stable as the balance of deposits in banks was secured to make payments. Currently, the lowest deposit interest rate for terms of less than 12 months is 10.6 percent per year at Dai Tin Bank (TrustBank), while the highest is 11.5 percent at Mekong Housing Development Bank.

This week, deposit interest rates in US dollar did not show big changes against the previous week as the supply-demand is now well balanced on the forex market. The US dollar/dong exchange rate on the foreign currency market has still expressed relief and Vietnam’s State Bank is continuing to monitor the forex market performance to stabilise the exchange rate. – SBV

Tags: Vietnam interbank market, Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Jul 30 2010. 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