State Bank of Vietnam (SBV) has reported that during last week (April 9 to 15), total trading turnover in the interbank market reached nearly 78.471 trillion dong and US$1.53 billion, averaging 15.694 billion dong and US$306 million per day.

In comparison with the previous week, the total interbank trading turnover of dong increased 2.976 trillion dong and trading value of US dollar soared US$261 million.

During the week, dong transactions were mainly in terms of less than 12 months. Of which, overnight trading turnover reached 29.178 trillion dong, increasing 406 billion dong week on week and accounting for 37% of total trading turnover.

Overnight trading turnover of US dollar was US$793 million, accounting for 52% of total trading turnover. During the week, trading turnover of one week term increased strongly by 5.647 trillion dong against the figure of previous week at 28.536 trillion dong.

The interbank average rate of dong during the week tended to fall in all terms by 0.22-0.75%. Of which, three-month term interest rate saw the strongest fall from 11.56% to 10.81% per year (falling 0.75%) and followed by one term from 10.18% to 9.48% per year (decreasing 0.71%).

Meanwhile, 12-month term interest rate increased by 0.49% from 10.28% to 10.78%. The six-month term interest rate stood still at 12% and demand interest rate was at 2.42%.

During first days of last week, the overnight interest rate was below 7% per year, but in the weekend, it jumped to over 7.2% per year, averaging 6.9% per year, falling 0.27% week on week.

Last week, the highest lending rate was 12% per year whereas the lowest level was 5.2%/year (excluding demand lending rate).

In week, overnight average interest rate of US dollar decreased slightly by 0.01-0.22% meanwhile terms of one and three months tended to increase from 0.91% to 1.75% per year (increasing 0.84%) and the one-month term also increased from 0.43% to 0.88% per year. Terms of six and 12 months were 2.03% and 2.59% per year respectively and the interest rate of remaining terms ranging between 0.38% and 1.75% per year.

As for lending rate, SBV said that after issuing the Circular No 12/2010/TT-NHNN dated April 14, 2010, commercial banks adjusted short-term lending rate of dong to commonly at 14-15% and 16% per year and the medium and long-term lending rate of dong decreased by 1% per year w-o-w.

According to the central bank, the FX market continued seeing positive movements. Commercial banks ensured the supply and demand of foreign currency. The liquidity of the market was improved. The FX rate at commercial banks was at 18,970-19,020 dong per US dollar.

(Source: Intellasia)