Weekly information on banking activities (Mar. 26-Apr. 01-11)

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. Inter-bank transactions turnover:

According to the express reports of commercial banks by March 30, the total amount of transactions in the inter-bank market reached about VND 157,727 billion and USD 5,714 million, i.e. VND 31,545 billion and USD 1,142 million per day averagely.

Most transactions in VND were short terms (Overnight and 1 week terms) with the total amount of transactions of 97,142 billion, accounting for 62% of the total amount of VND transactions. Transactions in USD were below 3 month terms, of which transactions for overnight term were 3,983 million, accounting for 70% of the total amount of USD transactions. There were marginal transactions for long terms (6 and 12 months).

3. The average inter- bank interest rates:

The interest rates by March 30 were as follows:

- For the rates in VND, the average inter-bank interest rates for most terms (Overnight, 1 week, 2 weeks, 3 months and demand terms) were on a downward trend with a decline of 0.07-0.44 percentage points p.a. The average rate for 6 months term was unchanged; the rates for 1 and 12 month terms slightly rose by 0.06 and 1.47 percentage points p.a respectively.

Although the average overnight interest rate was down by 0.23 percentage point p.a, it remained high at 13.24% p.a. The rates for other terms ranged between 12.86-13.50% p.a.

For the rates in USD, the average interest rates for most terms (Excluding 1 and 12 month terms) increased as compared to the previous week. The average overnight interest rate was 0.55% p.a. The average rates for other terms ranged between 0.81-3.30% p.a.

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

4. Exchange rate 

The foreign exchange market showed further positive trends. Corporate exporters sold foreign currencies to commercial banks. The exchange rate in the market was marginally down. Commercial banks quoted the buying and selling VND/USD rates at 20,910-20,915.

Diem Hang

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