According to the announcement of the State Bank of Vietnam (SBV), the interbank overnight offered rate on December 2 returned to 4.28 percent per year, the one-week term was at 4.43 percent per year, and the two-week term was at 4.46 percent per year. These were the most traded terms.
The longer-term interest rates were from one month to nine months. The interest rates ranged from 4.29 percent to 5.8%, of which the six-month and nine-month term rates generated insignificant transactions.
Thus, compared to the last week of November, the interbank offered rate increased by 0.35 percentage points for the overnight term, and the one week term’s increased by 0.44 percentage points.
Last week, interbank offered rates increased and exceeded four percent per year but until November 26 when SBV sharply lowered the open market operation (OMO) interest rate from 4.5 percent to four percent per annum, combined with strong management injecting money to banks after months of continuous net withdrawal, the interbank interest rates cooled down in the following days.
However, as reflected, the market only cooled down for three sessions. Up to the beginning of this week, it rebounded to the level that as if nothing had happened.
According to observers, the interbank offered rate rebounded sharply due to the increasing liquidity at the end of the year, partly because of the lowering interest rates of compulsory deposits and the one exceeding the required reserves of banks since December 2. The decline was 0.4 percentage points and was the first decrease in 15 years.
In a newly released report, SSI (SSI Security Corporation) Research analysts said that typically interbank overnight interest rates would range from the interest rate of bills to OMO rates, currently at 2.25 percent to four percent per year. In the peak month of the year, interbank offered rates would likely fluctuate at a high level of four percent per year.
