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Trading of Dong on Vietnam interbank market falls, interest rates rise

|Includes: VanEck Vectors Vietnam ETF (VNM)

 The State Bank of Vietnam (NYSEARCA:SBV), on September 15 said that the average daily trading value of dong on the interbank market declined by VND3 billion to VND16.417 trillion, while that of dollar rose $69 million to $462 million, respectively.

The State Bank of Vietnam (SBV), the country central bank, on September 15 said that the average daily trading value of dong on the interbank market declined by VND3 billion to VND16.417 trillion, while that of dollar rose $69 million to $462 million, respectively.

Total trading value of dong and dollar on the inter-bank market in the week ending September 9 amounted to VND147.750 trillion and $4.160 billion, respectively.

The total overnight trading value was VND55.728 trillion, representing 38% of the total trading, while that of U.S dollars was $2.102 billion, or 51% of the total turnover in the greenback.

The average lending interest rates of the dong on the inter-bank market increased for most terms, in which interest rates for 6-month loans soared to 13.3% from 11.66%, while those for other terms were up between 0.2% to 0.58%.

Interest rate for overnight rose 0.39% to 7.16% per annum. The average interest rates of above 3-month terms ranged from 7.16% to 9.09% per annum, interest rates of above 3-month terms stayed at above 11.2% per annum. However, interest rates for 3-month term were under at 10%.

The highest lending rate was recorded at 18% per annum and the lowest at 5.8% (excluding non-term interest rates).

The lending interest rates for U.S. dollar loans sled for most terms. The lowest rate was seen at 12-month term. down from 1.99% to 3.13%. The lending interest rates for 3-month term were down to 0.87% from 1.55%. while those for one-month and six-month terms edged down to 0.27% and 0.34%, respectively. Those for other terms slightly declined.

The average overnight interest rates stayed at 0.32% per annum while others ranged from 0.51% to 1.99%. No demand transactions were recorded.

Dong deposit interest rates stayed flat during the week. However, dong deposit rates at Military Bank rose 0.2% to 10.5%-11.2% for above-12 month terms.

Last week, dollar deposit rates were raised by 0.2%-0.3% at some big lenders including Vietcombank, Asian Commercial Bank,Military Bank. etc.

Forex market last week was stable with a balance of supply and demand, the central bank said, adding that it will continue to monitor the market and ensure exchange rate stability. Bid and ask of USD at commercial banks remained unchanged at around VND 19,475- VND19,500.

Interest rates in the weeks ending September 9 and August 26. Unit  %

Week Terms O/N 1 week 2 weeks 1month 3 months 6 months 12months On demand
Ending

 

Sep 09

VND 7.16 7.70 8.18 9.09 9.94 13.30 11.26 2.60
USD 0.32 0.51 0.61 0.70 0.87 1.51 1.99 -
Ending

 

Aug 26

VND 6.78 7.27 7.69 8.56 9.74 11.66 10.68 2.29
USD 0.33 0.57 0.70 0.96 1.55 1.85 3.13


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