The State Bank of Vietnam (SBV)’s report on banking operations in week between June 25 and 29 noted that the total trading turnover on the interbank market in dong reached approximately 152.093 trillion dong, an average of 30.419 trillion dong per day while that in US dollar reached 77.816 trillion dong, averaging at about 15.563 trillion dong per day.
In the week, interbank transactions occurred mainly in short terms whereby the total transactions volume for short term in dong reached about 107.658 trillion dong, equalling to 71 percent of the total trading value in dong and short term transaction volume in US dollar was reported at 64.473 trillion dong, equivalent to 83 percent of the total trading value in US dollar.
According to the central bank’s report, the interbank average interest rate in dong in week tended to increase for less than 9-month tenors. Of which, short tenors of from overnight to 2-weeks saw the rise of from 0.44 percent to 0.73 percent and 3-weeks to 6-months saw rises of 0.83 percent and 1.32%.
Meanwhile, 9-12 month terms posted falls of 2.5 percent and 0.28 percent from the previous week.
During the week, the dong deposit interest rates were mostly 1-2 percent p.a. for demand deposits; 2 percent p.a. for under 1 month terms; 8.8-9 percent p.a. for terms from 1 to 12 months and 10-12 percent p.a. for over 1-year maturities.
Lending interest rates in the domestic currency were 12-13 percent p.a. for agricultural producers, exporters and supporting industry; 16-20 percent p.a. for non-production and 14-17 percent p.a. for businesses and production.
Regarding transactions in US dollar, the interbank average interest rate increased in overnight term, 1-week, 2-months, 3-months and 12-months. Except the rise of 0.9 percent for 12-month term, the rise for remaining tenures was from 0.04 percent (overnight) and 0.14 percent (2-month term).
Dollar 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.
Dollar trading last week were active and liquidity in the banking system was good. The dollar prices at commercial banks were reported to hover around 20,850 dong and 20,910 dong for bid and ask, respectively.
Terms of from 2-weeks to one-month and 6-months, the average interest rate fell by 0.11 percent (2-weeks) and 0.22 percent (1-month) and 3-weeks and 6-months saw higher fall, at 0.73 percent and 1.08%. In week, there were no transactions for 9-month term.