Interbank average interest rate slips to below 10pct/yr

It is for the first time that the interbank average interest rate of a term has edged down to below 10 percent per annum (p.a.) since early 2011 so far. The interest rate of 9.5 percent p.a. is also the lowest level of 3-month term since October 8, 2010, according to the local online newspaper Gafin.vn.

Together with 3-month term, the overnight interest rate for 1-month term on February 4 also dropped by 0.03 percent and 2.33 percent compared to February 2 to stand at 13.52 percent p.a. and 11.95 percent p.a. respectively.

The interest rate for terms of 1-week, 2-weeks, and 6-months increased by 0.18 percent and 1.1 percent from February 2 and the average interest rate for 12-month term continued to be high at 20.64 percent p.a.

According to the State Bank of Vietnam (SBV), the interbank trading turnover on February 4 remained low with only nearly 8.745 trillion dong in comparison with nearly 30 trillion dong on February 2, 2012.

On February 4, the trading volume for overnight term reached over five trillion dong, accounting for about 60 percent of the total transaction volume.

The trading volume for 3-month term reached 400 billion dong, making up 4.5 percent of the total trading value.

According to the data from Reuters, in the week between January 30 and February 3, the central bank pumped over 23.2 trillion dong on open market operations (OMO) and withdrew over 80 trillion dong, leading to a net withdrawal of 56.843 trillion dong on OMO in week.

At the cabinet press conference in last weekend, SBV’s representative revealed that the liquidity of the banking system is in surplus after Lunar New Year (Tet) holiday.

 

Category: Finance