Total inter-bank trading of Dong surges 107%

The total inter-bank trading value of dong soared 107% to VN121.444trillion in the week ending May 13, while that of the dollar rose 46% to $ 1.408 billion, said the State Bank of Vietnam (SBV) on its website.

Trading value of the dong of overnight, one-week term dominated accounted for 66% of the total trading during the week. Meanwhile, overnight trading of U.S dollars was $2.423 billion, or 60% of the total turnover in the greenback.

The average interest rates of the dong on the inter-bank market edged up by 0.02-0.38% for overnight, 2-week, 3-month and non-term loans, in which the average overnight interest rate rose to 13.02% p.a.

However, the average interest rates for one –week, one-month and 6-month terms inched down by between 0.02% amd 0.5%. Interest rate for 12 month term remained at 13.5%.

The average interest rates for dollars rose for one-month and 3-month terms, in which those for 3-month terms surged the most to 2.29% p.a. from 0.63% p.a. However, the average overnight interest rate for dollar eased by 0.03% to 0.52% p.a.

Dong lending interest were 14.5%-17% p.a. for rural areas, 17-20% p.a. for production loans and 20-23% p.a. for non-production loans. Deposit interest rates ranged between 13.5% p.a. and 14% p.a.

Dollar deposit interest rates were almost unchanged, at 0.1-1% for demand loans, 2.6-3% for term loans after dollar deposit interest rates were capped at 3% for individuals and 1% for institutions from April 13. Dollar lending rates at 6-7.5% for short terms, 7-8.5% for medium to long terms.

Trading in the local forex market was more stable last week. The public and organizations have sold dollars to lenders, helped to pick up supply of dollars in the banking system.

The central bank has bought $1billion for about VND 20.6-20.7trillion from the banking system since late April, the state-run VnEcononomy cited official information from the central bank.

Local lenders quoted dollar prices at VND 20,520 – 20,620, respectively for bids and ask.

Table of Interest Rates in the Weeks Ending May 13 and May 6 (Unit %)

Week	Terms	O/N	1 week	2 weeks	1 month	3 months	6 months	12 months	On demand
Ending May 13	VND	13.02	12.95	13.17	12.85	13.35	13.40	13.50	2.06
	USD	0.52	0.85	1.25	1.40	2.29	0.12	1.40	-
Ending May 6	VND	12.89	13.05	13.12	13.35	13.33	13.42	13.50	1.68
	USD	0.55	0.86	1.30	0.96	0.63	2.40	2.60	-

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial