Specifically, the average VND interest rate in the interbank market in 8.2 overnight terms increased by 2.2% / year compared to the beginning of the month, to 2.86% / year; 1 week increased 1.64% / year, to 2.3% / year; 2 weeks up to 0.87% / year, up to 2.27% / year; 1 month increased 1.05% / year, up to 2.39% / year; 3 months increased by 0.84% / year, to 2.21% / year … This is the first week that the dong interest rate soared after many months to almost 0%. The dong interest rate increased while the dollar was still low, bringing the difference to 1 – 2.2% / year depending on the term. Banks traded in US dollars on the interbank market fluctuated from 0.13 to 1.15% annually.
Market transaction sales also increased, up 50% for the overnight period, to 122.391 billion, 2 weeks to 5.025 billion. According to the weekly report of the Banco del Estado from May 1 to May 5, the daily turnover of VND transactions increased by 2.321 billion VND compared to the previous week, on average 110.607 billion VND / day, reaching approximately 553.034 billion VND for the week. Meanwhile, the turnover of transactions in USD converted to VND in the week reached around 148.584 billion VND, the average of 29.717 billion VND / day, a decrease of 1.924 billion VND / day compared to the week previous. Transactions in VND were mainly focused on the one-day time frame (82% of total transaction billing) and the 1-week period (5% of total transaction billing). For transactions in USD, the terms with the highest sales were those of one day and one week with the proportions of 73% and 6%, respectively.
According to SSI Securities Joint Stock Company, interest rates “bounce” sharply when demand for cash increases in the days leading up to the Lunar New Year and demand for liquidity from commercial banks increases. After almost 7 months with no transaction, the State Bank network injected VND 24.1 billion through the purchase in terms of 7 and 14 days, with an interest rate of 2.5% / year in the open market. According to SSI’s assessment, the interest rate increase is only a seasonal factor, the interbank interest rate will cool down rapidly when foreign cash returns to the banking system after Tet. Interest rates on deposits and loans were unchanged last week and are expected to remain stable in the first quarter, when demand from the economy is still quite weak and the disease is still complicated.
