The State Bank of Vietnam (SBV) has announced a weekly report on banking activities from July 8th to 12th 2019.
Accordingly, report of credit institutions and foreign bank branches through the statistical reporting system showed that the dong transaction turnover on the interbank market in the period reached approximately 288.307 trillion dong, equivalent to an average of 57.661 trillion dong per day, down by 3.382 trillion dong per day compared to the week from July 1st to 5th 2019. The US dollar transaction value converted to dong reached about 123.789 trillion dong, equivalent to an average of 24.758 trillion dong per day, up by 948 billion dong per day compared to the previous week.
The dong transactions mainly focused on overnight term (accounting for 63 percent of the total trading turnover) and one week (21 percent of the total trading turnover). For the US dollar transactions, overnight and one-week terms recorded the highest turnover with proportions of respectively 64 percent and 24 percent.
In terms of interest rates, compared to the previous week, the dong average interbank rate in the week tended to decline on most terms. Specifically, the average interbank rate of overnight, one-week and one-month terms fell from respectively 0.51 percent, 0.38 percent and 0.27 percent per annum to 3.17 percent, 3.31 percent and 3.56$ per annum.
For the US dollar transactions, the average interbank rates in the week slightly declined compared to the rates in the previous weeks. Specifically, the overnight, one-week and one-month interest rates dropped by respectively 0.03 percent, 0.02 percent and 0.1 percent per annum to 2.41 percent, 2.51 percent and 2.56 percent per annum.
Meanwhile, according to statistics updated by the SBV on the agency’s website, the interbank rates continued to fall until the beginning of this week. On July 22nd, the dong interbank rates of overnight and one-week terms the two most-traded terms were respectively 2.74 percent and 2.92 percent per annum, while the two-week rate was 3.16 percent per annum. The continuous reduction of interbank rates shows that the liquidity of the system is abundant.
