Interbank rates in dong continue to fall

19-Sep-2019 Intellasia | VnEconomy | 6:02 AM Print This Post

In the week from September 9th to 13th, the dong interest rates continued to decline sharply at across all terms.

Specifically, on September 13th, the dong interest rates on the interbank market were traded at 2.78 percent per annum on overnight term (down by 0.87 percentage point), 2.96 percent on one-week term (down by 0.84 percentage point), 3.22 percent on two-week term (down by 0.66 percentage point), and 3.54 percent on one-month term (down by 0.61 percentage point).

At the same time, the US dollar interbank rates also dropped at all terms for most of the sessions in the week. By the end of the week, the rates stood at 2.22 percent per annum on overnight term (down by 0.06 percentage point), 2.31 percent on one-week term (down by 0.07 percentage point), 2.41 percent per annum on two-week term (down by 0.07 percentage point), and 2.55 percent on one-month term (down by 0.04 percentage point).

On the Open Market Operation (OMO), the State Bank of Vietnam (SBV) continued to not issue treasury bills. On the mortgage channel, the operator regularly offered one trillion dong per session in all five sessions of the last week, on a term of seven days and at interest rate of 4.75 percent per annum. However, there was no winning volume.

During the week, 988 billion dong were matured on this channel. Thus, the SBV net withdrew 988 billion dong from the market through mortgage channel, meaning that there was no bill in circulation on this channel.

It is known that from September 16th, the refinancing rates, rediscount rates, and overnight electronic interbank rate and rate of loans to offset capital shortage in clearance between the central bank and domestic banks started to be reduced.

The cut of 0.25 percentage point, according to economic experts, is a small level compared to the current lending rate level. With the current zero circulation of commercial banks on OMO channel, the interest rate reduction from the operator has not been clearly shown.

However, the capital demand often rises high from now to the end of the year. In fact, for many years, the amount of loans at the end of the year on OMO channel if often fairly large at about 150 trillion dong. Thus, the cut of 0.25 percentage point in operating rates also significantly reduces costs for banks.

On the foreign currency market, the central reference rate continued to be slightly reduced by three to eight dong across the sessions. Closing the week on September 13th, the central reference rate was listed at 23,133 dong per US dollar, slightly down by five dong again compared to the end of the previous week.

The spot buying rate was still listed at 23,200 dong per US dollar, while selling rate was 50 dong less than the exchange rate ceiling level, reaching 23,777 dong per US dollar at the last session of the week.

The interbank exchange rates continued to see small fluctuations in the last week, closing at 23,203 dong per US dollar, up by 11 dong compared to the last session of the previous week.

On the free market, the exchange rate was almost unchanged in the week, remaining the same in both buying and selling rates compared to the last session of the previous week, closing at 23,180 23,210 dong per US dollar.


Category: Finance, Vietnam

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