One-week term transactions overwhelm interbank market

Friday, Dec 13, 2013 10:20

Bank transactions are conducted at an Agribank branch in Ha Noi. The inter-bank market was dominated by one-week term transactions in Vietnamese dong during the first week of December. — VNS Photo Thai Ha

HA NOI (Biz Hub)— One-week term transactions in Vietnamese dong dominated the interbank market during the first week of December, while the lending rate was down 0.49 percentage points against November to 3.26 per cent.

According to the central bank's weekly report released yesterday, total value of the week transactions in dong was VND93.96 trillion (US$4.4 billion) and the value in US dollar transaction was about $2.8 billion.

One week term transaction in the dong accounted for 33 per cent of the total value, followed by overnight term 32 per cent and two week terms 15 per cent. Corresponding interest was up to 0.54 percentage points lower than previous week to 2.56-3.62 per cent.

In the commercial market, lending interest rates were reported to have remained stable through the first week. For dong loans, privileged interest rates ranged from 7 per cent to 9 per cent per annum, while common lending rate were 9-11.5 per cent per year.

Dollar loans were charged about 4-7 per cent per year.

The State Bank of Viet Nam also warned that credit institutions offering loans at lower interest rates than deposit rates should be investigated.

Interest rates for dong deposits were reported to remain around 7.5-8.5 per cent yearly for more than 12 month terms; 6.5-7.5 per cent for six to 12 months, and 5-7 per cent for one to six month terms. — VNS

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