Vietnam interbank trading of the Dong falls, O/N rates up to 11.33%
Total inter-bank trading value of the dong dropped by 16.09% to VND110.984trillion in the week ending December10 while overnight interest rates surged by 2.39% to 11.33% p.a., representing the strongest rally of the week.
Total inter-bank trading value of the dong dropped by 16.09% to VND110.984trillion in the week ending December10 while overnight interest rates surged by 2.39% to 11.33% p.a., representing the strongest rally of the week, said the State Bank of Vietnam (SBV) on December 15.
Total trading value of dong on the interbank market eased to VND110.984trillion from VND132.271trillion last week, however, that of dollar rebounded to $3.615billion from $2.982billion.
The overnight trading value of dong during the week was VND46.112trillion, representing 41.5% of the total trading, while that of U.S dollars was $2.497billion, or 68.49% of the total turnover in the greenback.
The average lending interest rates of the dong on the inter-bank market rebounded for most terms, in which average overnight and one-week interest rates surged by 2.39% and 1.19%, respectively, while those for other terms edged up by between 0.06% and 0.79%.
The highest average interest rates were 13.45% p.a. for 3-month term. No 6-month transaction was recorded during the week.
Average interest rates of dollar loans edged up by 0.04% p.a. and 0.35% for one-week and two-week terms. However, average interest rates edged down by 0.01% to 0.52% p.a. for overnight term; while those for one-month and 3-month terms declined by 0.22% and 0.49%, respectively.
No 6-month and few 12-month term transactions were recorded during the week.
The dong deposit interest rates on December 7 and 8 surged to 17-18% p.a. as Techcombank boosted up its deposit interest rates to 17% p.a. under a 3-day promotion program. However, after the SBV’s warnings, deposit interest rates eased to between 14% p.a. and 15% p.a. mostly for under 3-month terms.
Dollar deposit and lending interest rates maintained steady during the week.
Bid and ask of USD at local commercial banks remained unchanged at around VND 19,480- VND19,500. Meanwhile, dollar prices hovered at VND21,000 in the free market.
Interest rates in the weeks ending December 10 and December 3 (Unit %)
Tags: Vietnam interbank trading