Interbank interest rates for 3-week term and longer decrease

In the week between November 12 and 18, the interbank average interest rate in dong decreased for terms from 3-weeks and longer, of which, 12-month term and longer saw falls of 5.84 percent and 3.76 percent from the previous week, according to the State Bank of Vietnam (SBV).
Meanwhile, shorter terms of from two weeks saw slight increases.

The overnight average interest rate stood at 13.72 percent per annum (p.a.), up 0.03 percent week on week. The interest rate for terms of from 1-week to 3-months ranged between 12.51 percent p.a. (3-month term) and 15.31 percent p.a. (2-week term) and 6- month term at 16.33 percent p.a.

Notably, 9-month term remained high at over 20 percent p.a. and 12-month and longer at 16.91 percent p.a. and 18.64 percent p.a.

Meanwhile, the average interest rate in US dollar increased slightly for terms of overnight, 1-month and 12-months and terms of 3-weeks and above 12-months increased relatively by 1.51 percent and 0.52 percent on week. Remaining terms posted a fall by 0.14 percent (2-months) and 1.41 percent (3-months).

The overnight average interest rate in week was at 1.5 percent p.a., up 0.12 percent p.a. from previous week, and the interest rate for remaining terms hovered around 2.13 percent p.a. (over 2-months) and 4.24 percent p.a. (12-month term). In week, there were no transactions for 9-month term. Transactions for 6-month and 12-month terms occurred negligibly.

Interbank trading turnover in dong increased 23 percent on week.

According to the report of credit institutions, till November 16, the total transactions volume in dong in the interbank market in week reached approximately 167.916 trillion dong, up 32.095 trillion dong from the previous week, averaging at 33.583 trillion dong per day and in US dollar at 51.111 trillion dong (down 6.945 trillion dong on week), averaging at 10.422 trillion dong per day.

In week, transactions mainly occurred in short terms, especially for overnight and 1-week terms. For transactions in dong, overnight term accounted for the biggest proportion with approximately 80.021 trillion dong, or 48 percent of the total trading value.
For US dollar, overnight term also posted the biggest trading value of 27.235 trillion dong, or 52 percent of the total trading turnover.

Regarding the forex market, in week, the forex market continued stable tendency. The foreign currency status and trading turnover of credit institutions have been improved.

Currently, the forex rate quoted at commercial banks is commonly at 21,005-21,001 dong/US dollar. – Vietbiz24

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