Statistics of Bao Viet Securities Company (BVSC) showed that in the week from October 28th to November 1st, the State Bank of Vietnam injected 19.999 trillion dong through Open Market Operation (OMO).
Specifically, the SBV newly issued 51.996 trillion dong of seven-day bills at interest rate maintained at 2.25 percent). The value of bill matured in the week reached 71.995 trillion dong. On OMO channel, the SBV did not carry out any new issuance and also no maturity was recorded.
Accordingly, the current value of bills in circulation is 51.996 trillion dong and no OMO circulation is recorded. BVSC believed that the SBV’s move to again inject capital has helped improve liquidity in the last week.
On the interbank market, the interest rates in the week fell across all terms. Particularly, the interbank rates fell by 0.5 percent per annum on overnight term, 0.7 percent per annum on one-week term, 0.65 percent per annum on two-week term, reaching respectively 1.45 percent, 1.65 percent and 1.9 percent per annum.
In the end of the month, interbank rates showed signs of rebounding to 2.45 percent, but thanks to the SBV’s net injection, the interbank rates quickly cooled down and sharply declined. “In the last week, the US Federal Reserve (Fed) decided to cut interest rates after the meeting on October 30th and 31st. The low US dollar interest rate will help reduce pressure on the dong when the interbank rates are also at low levels,” said BVSC.
