Following the decline at the end of last week, earlier this week, VND interest rates on the interbank market continued to decline sharply and gradually returned to the stable range before the “wave” at the end of August.
In the last session of last week, on September 6, VND interest rates on the interbank market for short terms such as overnight, one and two weeks-terms, dropped back to below four percent per year.
Earlier this week, yesterday (September 9), the downtrend continued to show. In which, interest rate of overnight-term dropped to 3.52 percent per year, one week-term to 3.63%, two weeks-term to 3.78%, and one month-term to 4.02 percent per year
USD interest rates on the same market were relatively stable. Accordingly, although VND interest rates dropped sharply, the gap was still quite high. On 9 September, the average USD interest rate did not change for short terms of one month or less: overnight-term 2.28%, one week-term 2.38%, two weeks-term 2.48%, one month-term 2.59%.
Thus, after a strong fluctuation from the second half of August, the tension of liquidity and interest rates in the interbank market has stabilised.
Previously, from the second half of August to the beginning of September, VND interest rates in the interbank market continuously increased sharply and reached a high level; the average overnight interest rate exceeded five percent per year, somes amounted to six percent per year.
This development accompanied by a major change in the regulation of capital resources of the system: he State Bank of Vietnam (SBV) stopped issuing bills to withdraw money, instead, it increased the amount of capital supported on Open Market Operations (OMO), as well as many commercial banks raised capital in this channel.
From the end of last week to the beginning of this week, the market also noted that no one had to borrow capital from OMO anymore, although SBV offered a small amount of 1 trillion dong per session. The balance on this channel was only 988.2 billion dong, tied with one member and will expire this week.
