The total interbank trading value of the dong slipped 15 percent to VND154.15 trillion from VND182.75 trillion in the week ending April 13 while that of the dollar plunged 55 percent to VND78.95 trillion from VND175.32 trillion, said the State Bank of Vietnam (SBV).
Transactions in the interbank market were mostly for short terms. Specifically, trading value of the dong for overnight and 1-week loans accounted for 76 percent or VND116.64 trillion of the total dong turnover during the week. Meanwhile, overnight and 1-week trading of U.S dollars was VND46.622 trillion or 59 percent of the total turnover in the greenback.
The average dong interest rates on the interbank market fell by 0.51-1.06 percent for 1-week, 2-week, 1-month, and 6-month terms. Interest rates for other terms rose against the previous week. The average 12-month rate increased the most, up 1.36 percent. Interbank 9-month rate remained unchanged from one week earlier, staying at 13.5 percent p.a.
The average interbank interest rates for dollars rose for overnight (0.05 percent), 1-week (0.34 percent) and 2-month (0.43 percent) maturities and declined for other terms.
Commercial banks en masse adjusted down the dong deposit interest rates by 1 percent p.a., following the central bank’s decision to cut rate caps. The dong deposit interest rates were mostly 2.5-3 percent p.a. for demand deposits; 3.5-4 percent p.a. for under 1 month terms and 11.5-12 percent p.a. for terms from 1 month and above.
During the week, local lenders announced to cut lending rates by 0.5-2 percent. Lending interest rates in the domestic currency were 13.5-16 percent p.a. for agricultural producers, supporting industries and exporters (12 percent p.a. for rice stockpiling), 19-25 percent p.a. for non-production and 16-19 percent p.a. for others.
Dollar deposit interest rates ranged from 2 percent for individuals and 0.5-1 percent for economic organisations. Meanwhile, lending interest rates were mostly 6-7.5 percent p.a. for short terms; and 7.5-9 percent p.a. for medium and long terms.
The USD/VND exchange rates were stable during the week. The dollar prices at commercial banks were reported to hover around VND20,820 and VND20,870 for bid and ask, respectively.