Weekly information on banking activities (March 19-25, 2011)

1. Mobilizing and lending rates:

- The VND interest rates:

+ The mobilizing rates were commonly at 13.5 - 14% p.a

+ The lending rates were commonly 14.5% p.a for agricultural and rural development and exporters, 16-18% p.a for other productive and business enterprises, and 18-22% p.a for the non-productive sector.

- The USD interest rates:

+ The mobilizing rates were commonly at 0.2-0.5% p.a for demand deposits, 4.2-5.8% p.a for below 12- month deposits, and 4.5-6.0% p.a for over 12- month deposits.

+ The lending rates were commonly 6-7.5% p.a for short terms, and 7-8.5 % p.a for medium and long terms.

The specific mobilizing and lending rates were as follows:

2. Transactions turnover:

According to the express reports of commercial banks by March 23, the total amount of transactions in the inter-bank market reached about VND 134,125 billion and USD 4,116 million, i.e. VND 26,825 billion and USD 823 million per day averagely.

Most transactions in VND were short terms (Overnight and 1 week terms), especially overnight transactions. Transactions in VND for overnight term reached 60,579 million, accounting for 45% of the total amount of VND transactions. Transactions in USD for overnight term were USD 2,812 million, accounting for 68% of the total amount of USD transactions.

3. The average inter- bank interest rates:

The interest rates by March 23 were as follows:

- For the rates in VND, the average VND inter-bank interest rates were unchanged as compared to the previous week. The rates for 1 week, 1 month, 3 month and 12 month terms were on a downward trend; the rates for 2 week and demand terms were on a upward trend. The changes were marginal, only from 0.02 to 0.41 percentage points p.a. The rate for 6 month term was down by 1.8 percentage point p.a as compared to the previous week.

The average overnight and 6 month interest rates remained unchanged and were high, 13.47% and 13.50% respectively. The rates for other terms ranged between 11.70 - 13.47% p.a.

- For the rates in USD, the average interest rates in USD for 2 week, 3 month and 12 month terms were on a downward trend as compared to the previous week. The average rates for other terms (Overnight, 1 week and 1 month) were slightly up against the previous week. The average overnight interest rate was 0.53% p.a, up by 0.11% percentage point p.a. The average rates for other terms ranged between 0.70 - 2.97% p.a. There was no transactions for 6 month term.

The average interest rates in the inter-bank market were as follows (% p.a.):

4. Exchange rate 

Thanks to the synergetic and coordinated efforts by the SBV and the Ministry of Public Security, the foreign exchange market showed positive signs. Commercial banks quoted the buying and selling VND/USD rates at 20,895-20,900.

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