The Ministry of Planning and Investment (MPI) has released information about the currency market and banking activities in the first two months of 2019.
According to the MPI, the management in February 2019 focused on regulating the market rationally, supporting system liquidity and meeting the payment demand of the economy during the Lunar New Year.
The currency market and credit market were relatively stable. By the end of February 25th 2019, the total means of payment rose by 2.11 percent, mobilisation increased by one percent, and lending to the economy grew by 0.77 percent compared to the end of 2018.
The interest rate level was stable. The mobilisation interest rates in dong were popular at 0.5-one percent per annum for non-term deposits and deposits with terms of less than one month, 4.5-5.5 percent per annum on terms from one month to less than six months, 5.5-6.5 percent per annum on terms from six months to less than 12 months, and 6.6-7.3 percent per annum on terms from 12 months and more. The lending interest rates in dong were maintained at six to nine percent per annum on short terms, and nine to 11 percent per annum on medium and long terms. The mobilisation interest rate in US dollar was kept at zero percent per annum for deposits of individuals, organisations; while lending rates in US dollar were ranging from 2.8 percent to six percent per annum.
The interbank interest rates tended to rise in the period before the Lunar New Year holiday and decline after the Lunar New Year holiday. As of February 20th 2019, the rates were 3.7-4.8 percent per annum on overnight term, four to 4.75 percent per annum on one-week term, 4.2-4.7 percent per annum on two-week term, and four to 4.7 percent per annum on one-month term.
The foreign currency market was positive with good liquidity, fully meeting the legitimate demand for foreign currency of customers during the Lunar New Year season.
The gold price fluctuated in the same direction with the world gold price. The gold market on the God of Wealth day did not see chaos and people did not have to hustle to buy gold. The demand for gold on the God of Wealth day increased but mainly focused on jewellery and fine art items, while the demand for gold bar tended to go down.
