At the open market operation on September 16, the State Bank of Vietnam (SBV) returned to the treasury bill offering after a series of suspense from the session on August 22. Specifically, within the day, SBV offered 12 trillion dong, seven-day term. And this is also the first session, the treasury bill interest rate was reduced from 2.75 percent to 2.5 percent according to the decision to cut interest rates.
Despite lower interest rates, almost all the bid volume was absorbed by credit institutions, meaning that the capital began to show signs of temporary excess and abundant liquidity.
According to the latest report from SSI Securities Company: “After two very large purchases of foreign currencies, in the first four months of the year and from July until now, foreign exchange reserves are at the highest level, estimated at $70 billion”.
Thus, with the activity of buying US dollar from the operator, a corresponding amount of dong is also returned to the market. And most likely, the temporary redundancy is the consequence.
During the session, SBV continued to offer one trillion dong on the pledge channel, seven-day term, the interest rate dropped to 4.50 percent, but there was no winning amount. Thereby, the operator sucked 12 trillion dong from the market.
It also reflects the large cash flow in dong flowing into the market, the interbank exchange rate closed at 23,220 dong per US dollar, rebounded sharply by 17 dong compared to the last session of the previous week. In parallel, the exchange rate in the free market increased by 10 dong in both directions of buying and selling, trading at 23,19023,220 VND/ USD.
In the interbank monetary market yesterday, the average interbank rate in dong continued to decrease by 0.060.14 percentage points for all terms of one month or less compared to the previous session. Trading at overnight 2.65 percent; one week 2.83 percent; two weeks 3.08 percent and one month 3.48 percent.
In contrast, USD interbank average interest rate increased by 0.05 to 0.06 percentage points at all terms. Trading at overnight 2.28 percent; one week 2.37 percent; two weeks 2.47 percent and one month 2.60 percent.
