The total interbank trading value of the dong fell 3 percent to VND111.129 trillion from VND114.506 trillion in the week ending May 18 while that of the dollar rose 15 percent to VND65.46 trillion from VND56.972 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 81 percent or VND89.508 trillion of the total dong turnover during the week. Meanwhile, overnight and 1-week trading of U.S dollars was VND51.479 trillion or 79 percent of the total turnover in the greenback.
The average dong interest rates on the interbank market fell for most terms. Average 2-month and over 12-month rates represented the biggest decline of 3.04 percent and 3.5 percent, respectively. Exceptionally, interbank rate for 9-month maturity rose 1.02 percent during the week.
The average interbank interest rates for dollars declined for most terms. Of note, average 6-month rate climbed 1.39 percent during the period while that for 2-week maturity remained unchanged at 0.94 percent.
The dong deposit interest rates were mostly 2.4-3 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, more lenders announced to cut lending rates by 0.5-1 percent. Lending interest rates in the domestic currency were 13.5-15 percent p.a. for agricultural producers (12 percent p.a. for rice stockpiling), 16.5-20 percent p.a. for non-production and 14-18 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 5.5-7.5 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. Credit institutions net bought foreign currency from customers. The dollar prices at commercial banks were reported to hover around VND20,820 and VND20,870 for bid and ask, respectively.