The system liquidity recorded huge abundance in the last week. Therefore, through the Open Market Operation (OMO), the State Bank of Vietnam (SBV) continued to raise the treasury bill issuance to withdraw more money.
Specifically, on the OMO market in the week from September 30th to October 4th, the SBV raised the bill offer to 87 trillion dong on a term of seven days and interest rate of 2.5 percent per annum. Credit institutions absorbed almost this entire offer volume. In the week, 69 trillion dong were matured on this channel.
On mortgage channel, the operator regularly offered one trillion dong bills per session on all five sessions of the last week with a term of seven days and interest rate of 4.5 percent per annum. However, there was no winning volume.
Thus, 18 trillion dong were withdrew, and the bond volume, accordingly, increased to 87 trillion dong.
Researchers at the Securities Company of Commercial Joint Stock Bank for Investment and Development of Vietnam (BSC) believed that the SBV still showed active liquidity operation after accelerating the purchase of foreign currencies, thereby increasing the foreign exchange reserve to 70 billion US dollars.
Operating the market closely to market movements helped the interest rates, exchange rate and Consumer Price Index (CPI) stable, supporting the economic growth. The Gross Domestic Product (GDP) growth of the first nine months of 2019 was announced last week at 6.98 percent, while the credit growth was 8.64 percent per annum. With stable macroeconomic foundation, the government is in good position in both monetary and fiscal policies to support the completion and surpassing of the socio-economic targets in 2019, as well as to deal with negative fluctuations from the negative fluctuations from international market, said BSC.
Closing the week on October 4th, the dong interbank rate was 2.25 percent per annum on overnight term (up by 0.08 percentage point), 2.5 percent per annum on one-week term (up by 0.04 percentage point), and 2.68 percent per annum on two-week term (0.08 percentage point), 3.13 percent per annum on one-month term (up by 0.06 percentage point).
Meanwhile, the US dollar interbank rate in the week fluctuated across all sessions from one month-term and less. Closing the week on October 4th, the rate stood at 2.06 percent per annum on overnight term (down by 0.02 percentage point), 2.18 percent per annum on one-week term (unchanged), 2.28 percent per annum on two-week term (down by 0.05 percentage point) and 2.43 percent per annum on one-month term (down by 0.01 percentage point).
On the foreign currency market, in the last week, the central reference rate continued to be adjusted up and down across the sessions, closing the week at 23,159 dong per US dollar, only down by one dong compared to the end of the previous week.
The interbank exchange rate in the last week slightly fluctuated around the SBV’s buying rate. Closing the session on October 4th, the interbank rate closed at 23.202 dong per US dollar, remained unchanged.
The exchange rate on free market did not fluctuate, traded at 23,180 23,210 dong per US dollar on all five sessions of the week.
