As BizLIVE mentioned in the previous report, the system liquidity of the credit institutions (CIs) showed signs of abundancy and the market recorded expected adjustments from the State Bank of Vietnam (SBV) in the past week.
Specifically, in the week of May 27th 31st, the SBV strongly raised the bill offer to 86 trillion dong and it was the largest offer from the beginning of the year. CIs absorbed up to 84.799 trillion dong of the bill issuance value.
There were 43.720 trillion of bills matured during the week. Accordingly, the SBV net withdrew 41.079 trillion dong from the market. This is the largest net withdrawal scale in one week since the beginning of the year.
On the mortgage channel, the SBV continued to offer one trillion dong of bills in each session on a term of seven days and interest rate of 4.75 percent per annum. However, there was still no winning bid in the week.
The dong interbank interest rates on all terms declined significantly in the past week. Closing the week, on May 31st, the overnight term fell to below three percent per annum, traded around 2.86 percent per annum (down by 0.29 percentage point). The one-week, two-week and one-month rates stood at 3.22%, 3.4 percent and 3.68 percent per annum.
Meanwhile, the US dollar interbank rates continued to see slight fluctuation and the dong-US dollar interest rate difference on this market was narrowed. In the last session of the week (May 31st), the US dollar rate was 2.51 percent per annum on overnight term, 2.63 percent per annum on one-week term, 2.69 percent per annum on two-week term, and 2.83 percent per annum on one-month term.
