The difference between dong and US dollar interest rates in the interbank market remains at two percentage points.
According to the State Bank of Vietnam (SBV), the average US dollar interbank interest rate in the first week of 2019 (31st December4th January) tended to decrease in key terms. Specifically, overnight, one week and one month rates decreased by 0.02 percent, from 0.04 percent and 0.54 percent per year to 2.46 percent, 2.55 percent and 2.78 percent per year respectively.
The revenue of transactions converting from US dollar into dong in the week was about 74,412 billion dong, contributing an average of 14,882 billion dong per day, a decrease of 9,289 billion dong per day compared to the previous week.
For interbank transactions in local currency, the revenue in dong in the period decreased by 25.852 trillion dong per day to reach approximately an average of 33,919 billion dong per day. The total revenue for the whole week hit 169.596 trillion dong.
Compared to the previous week, the average interbank rate was likely to climb at almost all tenors. The average rates for overnight, one week and one month terms increased by 0.18 percent, 0.45 percent and 0.56 percent per year to 4.42 percent, 4.81 percent and 5.47 percent per year respectively.
In the residential market, dong rates are at 0.5-1 percent per year for demand deposits and term deposits of less than one month; 4.5-5.5 percent for deposits with terms of 1-6 months; 5.5-6.5 percent for 6-12 month term deposits. With tenors of over 12 months, the interest rate is 6.6-7.3 percent per year. Currently, dong lending interest rate is popular at 6.0-9.0 percent per year for short term; 9.0-11 percent per year for medium and long term.
Meanwhile, US dollar deposit interest rate is still at zero per cent per year as regulated. US dollar lending interest rates are popular at 2.8-6.0 percent per year; in which short-term rate is at 2.8-4.7 percent, medium and long-term rate is 4.5-6.0 percent.
