After more than four months of stabilisation since the middle of March 2019, the regulator has reduced interest rates on Treasury bills.
Last week, along with reducing the volume of circulating bills to inject money into the market, the State Bank of Vietnam (SBV) also suddenly changed the interest rates.
Specifically, SBV sharply reduced the bond offering to 30 trillion dong, the term remained at seven days. Credit organisations absorbed almost all of this volume.
However, instead of remaining at three percent per year in the first four sessions of the week, the weekend session recorded interest rates of bonds reduced to 2.75 percent per year. Thus, after more than four months of stability since the middle of March 2019, the regulator has reduced the interest rate.
On the pledge channel, there was no transaction even though SBV still regularly offered one trillion dong per session, seven-day term, interest rate of 4.75 percent per year.
With 48.998 trillion dong of Treasury bills matured in the week, SBV net injected 19 trillion dong into the market, bringing the volume of the bills circulated to 29.998 trillion dong.
Along with the movements of the regulator, the interbank interest rate in dong continued the downward trend of the previous two weeks at all terms. At the end of the week, interbank interest rates in dong were traded around at 2.88 percent (-0.20 percentage points) for overnight; 2.98 percent (-0.24 percentage points) for one week term; 3.18 percent (-0.17 percent percentage points) for two week term and 3.48 percent (-0.12 percentage points) for one month term.
Meanwhile, interbank interest rates in US dollar continued to be less volatile compared to the previous week. At the end of the week, the overnight interest rate stood at 2.51 percent (-0.01 percentage point); one week 2.59 percent (unchanged), two weeks 2.66 percent (-0.01 percentage points) and one month 2.78 percent (-0.02 percentage points).
In the foreign exchange market, the central exchange rate was adjusted up and down through the sessions, so there was no big fluctuation and stopped at 23,067 VND/USD.
The interbank exchange rate tended to increase quite positively. At the end of the week, this exchange rate closed at 23,240 VND/USD, an increase of 40 dong compared to the previous week.
