Interbank Rates Drop, SBV Continues Net Withdrawal

The liquidity of the system continued to be abundant, as shown by the fact that offered T-bills were almost fully bought despite sharp decrease in offering interest rates.

During the week from October 7 to October 11, the State Bank of Vietnam (SBV) offered VND 90,000 billion 7-day T-bills. Offering interest rates were at 2.50% for the first two sessions and dropped sharply to 2.25% the following sessions. Nevertheless, credit institutions still absorbed almost this entire volume.

During the week, VND87,000 billion T-bills matured, bringing outstanding T-bills to VND90,000 billion.

On the mortgage channel, the State Bank still offered VND1,000 billion/session in all 5 sessions last week for 7-day terms, with interest rates of 4.50%/year. In the first 4 sessions of the week, there was no winning volume; only the last session had VND495 billion.

In all, the SBV net withdrew VND2,504 billion from the market through open market operations last week.

Meanwhile, the VND interbank interest rate also dropped at all terms in all 5 sessions.

Accordingly, at the end the of week, overnight, 1-week and 2-week and 1-month VND interbank rates were traded around 1.93%, 2.12%, 2.38% and 2.72% respectively, and down 0.32%, 0.38%, 0.30% and 0.41% respectively compared to the previous week's close.

Meanwhile, interbank USD interest rates had mixed movements.

At the end of the week, overnight and 1-week USD interbank rates were at 2.01% and 2.16% respectively, both down 0.02%, while 2-week and 1-month rates were at at 2.31% and 2.48% respectively, up 0.03% and 0.05%.

« Go Back