One-week term average interest rate slips to 8.71pct/yr

As reported by the State Bank of Vietnam (SBV), the interbank average interest rate on March 22 increased in most terms from March 21.

Accordingly, the 1-month term saw the strongest increase of 0.44 percent, from 11.61 percent per annum (p.a.) on March 21 to 12.05 percent p.a. on March 22.

Overnight and one week terms saw a decline of 0.61 percent and 1.36 percent to 10.4 percent p.a. and 8.71 percent p.a.
According to the local online news provider Gafin, the interest rate of 8.71 percent p.a. is the lowest level of this term since October 22, 2010.

The interest rate for 12-month term remained at the reference level of March 21 at 8 percent p.a., down 7.02 percent from March 20.

This is also the first time the interbank average interest rate has slipped to below 9 percent p.a. since December 1, 2010.
In the week between March 19 and 23, the central bank posted a net withdrawal of 13.2 trillion dong on open market operations (OMO), of which over 10 trillion dong was withdrawn via issuing treasury bonds.

In the previous week from March 12 and 16, the central bank also withdrew over 5.1 trillion dong by issuing T-bonds, bringing the total net withdrawal for the whole week to nearly nine trillion dong.

 

Category: Finance