Weekly information on banking activities (March 5 – 11, 2011)

1. Mobilizing and lending rates:

- The VND interest rates:

+ The mobilizing rates were quoted at 13.5-14% p.a. Commercial banks complied with Circular No.02/2011/TT-NHNN dated March 3 on setting the maximum VND mobilizing interest rate.

+ The lending rates for short terms 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 common mobilizing rates were 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% p.a, up by 0.5 percentage point 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. Inter-bank transactions turnover :

According to the express reports of commercial banks by March 9, the total amount of transactions in the inter-bank market reached about VND 114,722 billion and USD 3,426 million, i.e. VND 22,944 billion and USD 685 million per day averagely. 

Most transactions in VND were overnight and 1 week terms that accounted for 74.7% of the total amount of VND transactions. Transactions in USD was mainly overnight with an amount of USD 2,462 million, accounting for 72% of the total amount of USD transactions.

3. The average inter- bank interest rates:

The interest rates by March 9 were as follows:

- For the rates in VND, the average VND inter-bank interest rates slightly rose for overnight, 1 week, 1 month and demand terms. The average rates for other terms (2 week, 3 month and 6 month terms) slightly declined. The average rate for 12 month term was unchanged at 13.43% p.a.

The average interest rates for overnight and 1 week terms continued to increase, in particular: the average overnight interest rate was 13.38% p.a, up by 0.90 percentage point p.a, the average rate for 1 week term was 13.28% p.a, up by 0.05 percentage point p.a as compared to the previous week. The average rates for other terms were above 13% p.a.

- For the rates in USD, the average interest rates in USD for below 1 month terms were on a upward trend as compared to the previous week. The average rates for 2 week and 1 month terms remarkably increased by 0.61 and 0.76 percentage points respectively. The rates for 1 week and above 3 month terms decreased as compared to the previous week; of which the rates for 6 month and 12 month terms remarkably declined. The average overnight rate was 0.38% p.a, up by 0.02 percentage point p.a. The average rates for other terms ranged between 0.10% - 2.72% p.a. 

The amount of transactions in USD for long terms (6 and 12 months) was small.

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

4. Exchange rate   

Thanks to synergistic solutions of the Government in containing inflation and stabilizing macro-economy, and monetary and foreign exchange management measures taken by the SBV, the forex market showed positive signs.

The VND/USD rates were commonly quoted by commercial banks at 20,870/20,875.

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