Though Tet (Lunar New Year) is approaching with rising capital demands, the liquidity of the banking system is abundant, helping interest rates in the inter-bank market sharply, industry insiders said.
Interest rates in the inter-bank market are declining in contrast to previous years when the rate often increased significantly due to rising capital demand at year-end.
The foreign exchange market is witnessing an unusual phenomenon: the dong is not just steady against the US dollar but also 0.16 per cent up from its rate at the end of late 2018.
Interest rates on the inter-bank market have surged strongly in the past week despite the central bank’s net injection of VND14.4 trillion (US$612.76 million).
Since mid-February interest rates on dong loans on the inter-bank market have surged, somewhat surprising analysts since liquidity at most banks is pretty steady.