Interbank trading value surges nearly 16pct

The interbank transaction volume in dong increased nearly 16 percent in week from July 30 to August 3 after a fall of 7.7 percent in the previous week.

Particularly, according to the State Bank of Vietnam (SBV)’s report on banking operations in week from July 30 to August 3, the total trading value on the interbank market in dong reached approximately 133.221 trillion dong, an average of about 26.644 trillion dong per day while that in US dollar reached 66.206 trillion dong, averaging at 13.241 trillion dong per day.

Thus, in comparison with the previous week, the trading value in dong increased 15.81 percent while that in US dollar saw an on week fall of 10.9%. In the previous week, the trading value in dong declined 7.7 percent while that in US dollar surged nearly 33 percent in the week.

During the week, interbank transactions occurred mainly in short terms. The trading value in short terms in dong reached about 83.151 trillion dong, equalling to 62 percent of the total trading value in dong and the trading value in US dollar for short terms reached approximately 50.798 trillion dong, or 77 percent of the total trading value in US dollar.

According to the central bank’s report, the average interbank interest rate in dong decreased in terms of from one month and less, from 3-months and 9-months and higher, of which, overnight, 3-week and 9-month terms saw a fall of 1.04%, 1.16 percent and 1.75 percent and remaining terms decreased from 0.41 percent (1-month term) to 0.9 percent (1-week and above 12-month terms).

Particularly, 2-month and 6-month terms saw increases of 1.75 percent and 0.39%.

For transactions in US dollar, the average interest rate decreased in terms of overnight, 3-weeks to 3-months and 12-months with fall of from 0.01 percent (3-week term) to 0.18 percent (12-month term) and 2-month term declined 1.32%.

Terms of 1-week, 2-weeks and 6-months increased by 0.19%, 0.08 percent and 0.39 percent respectively.

During the week, the deposit interest rate in dong was stable in comparison with the previous week. Currently, the popular saving rate for demand deposit is 1-2 percent per year, less than 1-month at 2 percent p.a., from 1-month to less than 12-months at 8.8-9 percent p.a. and from 12-month and higher at 10-12 percent p.a. The deposit interest rate in US dollar is at 2 percent p.a. for individual savings and 0.5-1 percent p.a. for institutional deposits.

Also during the week, credit institutions continued to reduce the lending interest rate for old loans to 15 percent per year as directed by the central bank’s governor. Notably, in week, Vietnam Export Import Commercial Joint Stock Bank (Eximbank-EIB) launched a credit programme worth five trillion dong at the interest rate of 10 percent per year providing that loans in dong must be guaranteed according to the value of US dollar and associated with the increase fluctuation of the dong/US dollar forex rate at no higher than 1%.

Presently, the lending interest rate in dong is popularly at 10-13 percent per year for prioritised sectors (agriculture and rural areas, export, small and medium sized enterprises-SMEs and supporting industry) and other business and production sectors at 12-15 percent per year. The lending interest rate in US dollar is commonly at 5-7 percent p.a. for short terms and 6-8 percent p.a. for medium and long terms.

 

Category: Finance