Bao Viet Securities Joint Stock Company (BVSC) just announced the monetary market report for the week of the 23 to 27 September 2019. Specifically, in the past week, the amount of net pump per suction on the open market was zero. The State Bank of Vietnam (SBV) issued new treasury bills equal to 68.997 trillion dong last week (seven-day term with interest rates maintained at 2.5 percent) and matured bills reached 68.997 trillion dong. On the open market operation (OMO) channel, SBV did not carry out new issuance and there was no maturity.
In the interbank market, interest rates continued to decline slightly at all terms. Specifically, the interbank offered rates for overnight, one-week and two-week terms decreased by 0.05 percent; 0.1 percent and 0.1 percent, declined 2.15 percent per year; 2.4 percent per year and 2.6 percent per year respectively. Interest rates continued to remain low after the SBV’s decision to lower interest rates.
In our opinion, the maintenance of the circulating treasury bills was similar to the previous week. The interbank offered rate decreased slightly, indicating that the system liquidity was still in a relatively abundant state.
As usual, at the end of the month and the end of the previous quarter, the system often witnessed signs of liquidity stress. However, developments in Q3 of this year did not show this phenomenon. In addition to the net foreign currency buying, which meant the pumping of dong into the market of SBV, the credit growth as of September 20 was lower than deposit growth (8.4 percent compared to 8.68 percent was also the reason to help maintain a positive state of systemic liquidity).
At the press conference this morning (October 1), the leaders of the Monetary Policy Department of SBV said that in the first nine months of the year, there was synchronous, flexible and proactive implementation of monetary policy instruments, in close coordination with fiscal policies regulating excess capital, ensuring liquidity for credit institutions. By September 24, 2019, the total means of payment increased by 8.58 percent, capital mobilisation increased by 9.03 percent compared to the end of 2018. The liquidity of the CI system was guaranteed. The interbank market interest rate was in line with monetary policy operating target.
