As of June 27th, the average dong interbank interest rates continued to increase by 0.05 0.17 percentage point on all terms from one week or less, compared to the previous session. This uptrend has been seen since last week.
On June 27th, the average interbank rate in dong was 3.8 percent per annum on overnight term, 3.88 percent per annum on one-week term, 3.98 percent per annum on two-week term, and 4.1 percent per annum on one-month term.
Thus the dong interest rates on the interbank market recorded continuous increases in the recent sessions. The overnight-term rate in mid-June has increased from only around 3.1 percent per annum to 3.8 percent per annum.
Meanwhile, the US dollar interbank rates were fairly stable. On June 27th, the average interbank rates in US dollar slightly increased by 0.01 0.02 percentage point across all terms, reaching 2.53 percent per annum on overnight term, 2.63 percent per annum on one-week term, 2.71 percent per annum on two-week term, and 2.82 percent per annum on one-month term.
In line with those interest rate movements, the demand for dong tended to increase, reflected in the regulating activities of the State Bank of Vietnam (SBV).
Specifically, in the recent trading period, the SBV has reduced the volume of bills offered to withdraw less money than before. Previously, the operator continuously maintained money withdrawal at 13 to 15 trillion dong each day, and it has recently declined to seven to eight trillion dong.
Accordingly, a large amount of bills in turn matured and the dong has been net injected into the market through this channel. The value of bills in circulation (the value that the SBV temporarily withdrew at a time) has fallen to 37.999 trillion dong as of June 27th, after being maintained at around 70 trillion dong over a week ago.
