The data, which has just been updated by the State Bank of Vietnam (SBV), showed that short-term interbank interest rates continued to fall this week.
Specifically, on December 16, the overnight interest rate retreated to 3.38 percent per year, and the one-week term was 3.68 percent per year. Comparing to the end of last week, interest rate dropped remarkably, in which the overnight and one week periods dropped by 0.27 percent (on Friday, it was 3.65 percent and 3.92 percent per year). The one-week term interest rate decreased by 0.02 percentage points. Trading volume at these terms decreased significantly. Meanwhile, the terms from two weeks, one month and six months increased compared to the end of last week. In which, six-month term rose from 5.69 percent to 6.08 percent per year with trading volume increasing more than two times.
In the open market, in the first session of this week, SBV continued to offer seven-day tenor but no matched amount. This was the second consecutive session that commercial banks did not borrow from the open market. This signal, combined with reduced trading volume and interest rates in the interbank market, indicates that short-term liquidity needs have been met. However, demand for long-term loans has shown signs of increase and banks are willing to pay high interest rates to borrow.
