Although money has reclaimed into the market, the number of treasury bills in circulation is still anchored by the State Bank of Vietnam (SBV). Specifically, the market opened last week, SBV offered only 46 trillion dong of seven-day bills. Credit institutions absorb almost this entire volume at an interest rate of 2.25 percent per year. During the week, 52 trillion dong of bills matured. Therefore, the investors injected six trillion dong to the market, bringing the number of treasury bills down to 46 trillion dong.
Normally, during this time of the year, liquidity of the banking system is always difficult and SBV must constantly pump money out to support.
In fact, in the middle of November, the market recorded that SBV did not offer treasury bills. At the same time, on the pledged channel, there had to be a large bid, with up to 17 trillion dong for seven-day term with an interest of 4.75%, the circulating volume increased to nearly 56.7 trillion dong.
With the above developments, this year, not only the volume of treasury bills doubled in the same period, the operator offered one trillion dong every day, willing to give loans to support but no credit institutions needed.
There were also opposite movements with the same period, last week in the interbank monetary market, overnight interest rate in dong stood at only 2.07%; one week 2.27%; two weeks 2.38%; and one month 2.62%. While the same period last year was 4.79%; 4.82%; 4.83 percent and 4.87 percent respectively.
According to experts, the major changes in the direct impact on the interests of commercial banks; the fee and the short-term funding balances became much more comfortable than last year.
In the foreign exchange market, the central rate was adjusted to increase and decrease slightly over the sessions. Closing the week of November 8, the central exchange rate was listed at 23,133 dong per US dollar, down only five dong compared to the previous week. Spot buying rate is still listed by the operator at 23,200 dong per US dollar. The selling rate is listed at 23,777 dong per US dollar, 50 dong lower than SBV’s ceiling rate.
The large supply of foreign currency is a factor contributing to the USD/VND exchange rate in the interbank market during the last time almost unchanged. Ending the last session of the week of November 8, the interbank exchange rate closed at the buying threshold of SBV, moving sideways compared to the previous session of the previous week.
The free market rate also stood still in both buying and selling directions, trading at 23,18023,210 dong per US dollar.
It is known that, a recent report of SSI Securities Company statistics, external reserves continued to increase to a record level, about $73 billion.
