Interbank interest rate tumbles to 2.5pct/yr on May 9

The interbank overnight interest rate on May 9 slipped to a record low, at 2.5 percent per annum (p.a.), breaking the bottom set in 2007, and the local newswire NDHMoney.vn reported, citing Reuters’ data.

In particular, in the interbank market, the overnight interest rate stood at 2.5-3 percent p.a., falling strongly against 3-3.6 percent p.a. on May 8.

According to Reuters’ data, this is the lowest level since 2005 (the data updated figures as of the end of second quarter of 2005).

In comparison with data of the State Bank of Vietnam (SBV), the interest rate of 2.5 percent p.a. has broken the interest rate bottom of 3 percent p.a. on July 23, 2007.

Also in the morning May 9, the interbank interest rate for 1-week term slashed to 3.5-4 percent p.a., down sharply against 4-4.5 percent p.a. on May 8, one month at 6-6.5 percent p.a., lower than the levels of 6-7 percent in the day earlier.

In the open market operations (OMO), the yield of T-bills dropped to 5.8-10.23 percent p.a. However, many commercial banks are still constantly buying T-bills daily with a volume of about three trillion dong.

The amount of capital spent by commercial banks to purchase T-bills has been up to more than 80 trillion dong since March 15 so far.

 

Category: Finance