Overnight interest rate anchored at 4pct

13-Dec-2019 Intellasia | VnEconomy | 6:02 AM Print This Post

Although the interbank market is still hot, the overnight interest rate of dong is pegged at four percent, but compared to the same period last year, this interest rate is still much lower.

In the interbank monetary market on December 9, the interest rates increased slightly by 0.030.09 percentage points for all terms of one month or less compared to the end of last week.

Specifically, the rate for overnight transactions was 4.03%; one week 4.13%; two weeks 4.23 percent and one month 4.35%. At the same time last year, these rates ranged from 4.8 percent to 5%.

According to experts, there are many factors that make interest rates lower this year than last year. In particular, the amount of borrowings in the mortgage channel (Open Market OperationOMO) remains the same as previous period, at nearly 60 trillion dong while the sale of foreign currencies to the State Bank of Vietnam (SBV) helped to increase the supply of dong.

In addition, the recent Circular 58 of the Ministry of Finance put system liquidity under pressure, but thanks to timely support from regulators and commercial banks, they actively restructured cash flow to quickly stabilise the market.

Accordingly, the market liquidity has been less hot, the amount of capital offered by SBV has a large surplus. For example, yesterday, SBV offered up to12 trillion dong but credit organisations only borrowed 6.638 trillion dong.

On the other hand, the interbank overnight rates usually range from the rate of treasury bills to OMO. OMO rate last year was 4.75 percent and this year only four percent so this rate is somewhat limited and lower than the same period.

In the foreign currency market on December 9, SBV listed the central exchange rate at 23,167 VND/ USD, rising back to three dong compared to the last session of the previous week. Accordingly, the selling rate was listed at 23,812 VND/ USD. The spot rate listed by the operator was 23,175 VND/ USD.

Interbank exchange rate closed at 23,175 VND/ USD, slightly decreased by two dong. The free market rate increased by 20 dong in both bid and ask rate, trading at 23,20023,230 VND/ USD.


Category: Finance, Vietnam

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