The analysis centre of Saigon Securities Incorporation (SSI Research) has released a monetary market report for the week of July 6th to 10th. According to the report, the State Bank of Vietnam (SBV) did not conduct new transactions on the open market operations (OMO) and one billion dong were withdrawn due to the maturity of the buying forward in the previous week.
The liquidity of commercial banks remained abundant, interest rates fluctuated in low zone on the interbank market. At the end of the week, the overnight interest rate was unchanged at 0.21 percent per annum and one-week interest rate increased by two basis points to 0.32 percent per annum.
According to information of the General Statistical Office, the mobilisation growth as of June 19th was 4.35 percent compared to the end of the previous year, nearly doubled the credit growth in the same period. The SBV maintained the monetary easing via 147 trillion-dong injection through matured bills. In addition, the widening gap between mobilisation and lending has caused the liquidity of banks to be abundant. The interbank interest rates have dropped by 1.6 3.4 percent per annum compared to 2019, and are likely to level off in low zone.
The number of commercial banks announcing to lower savings interest rates continued to rise in the last week. Savings interest rates are currently 3.5 4.25 percent per annum for terms of less than six months, 4.4 6.7 percent per annum for terms from six to less than 12 months, and 5.5 7.5 percent per annum for terms of 12 and 13 months. This interest rate zone is 0.75 one percent per annum lower than the rates for terms of less than six months and one to two percent per annum lower than the rates for terms from six months or more at the end of 2019.
