Monetary market shows positive changes: SBV
The State Bank of Vietnam (SBV) this morning released a report about last week’s market performance, which said that there were positive changes in the monetary market.

Interest rates stabilised

According to SBV, thanks to the good implementation of monetary policies, the interest rates in the inter-bank market have been stabilised, while the overly high overnight interest rates seen before Tet and right after Tet have passed.

The inter-bank interest rates have been decreasing since the beginning of the month with the biggest decrease of 3.43% (from 8.57% to 5.14%) for overnight interest rates and 3.2% (from 12.06% to 8.86%) for two-week loans.

On March 14, the VND and US$ interest rates in the overnight market stayed at 5.62% and 3.73%, respectively, while the one-week and two-week interest rates stayed at 9.21% and 8.86% for VND and 3.68-3.95% for US$ loans.

As for longer-term loans, the interest rates for one-month term are 11.73% (VND) and 4.38% (US$), but the rates for 12-month-term loans are 9.41% (VND) and 5.82% (US$) only.

The VND deposit and lending interest rates of commercial banks have also been stabilised. State owned banks are mostly applying the 10.13% per annum interest rate for 12-month-term deposits, while joint stock banks 11.78%.

The popular lending interest rates offered by state owned banks are 12.6-14.6% per annum (short term), 13.5-16.2% (medium term), and 13.5%-16.2% (long term). Meanwhile, the rates of joint stock banks are 18.42% for short-term, and 21.85% for medium- and long-term loans.

Dollar revaluates again

By March 20, the dollar value in the interbank market had decreased by 0.35% over the beginning of the month, and 0.76% over the beginning of the year.

Meanwhile, the exchange rate applied by commercial banks in transactions in recent days is VND15,830-15,832/US$1, down by 0.6% over the beginning of the month and 1.1% over the beginning of the year.

The dollar value, after a period of decreasing, has bounced back to VND15,700-15,760/US$1, down by 2.3% over the beginning of the year.

Today, March 25, the dollar value unexpectedly increased, from VND15,825/US%1 to VND15,880/US$1.

As such, according to SBV, the sharp devaluation of the dollar, which has been badly affecting exports, has improved.

Regarding the forex policy the central bank will pursue in the time to come, SBV said that it will follow the Prime Minister’s instruction on regulating the exchange rate based on the supply and demand basis in the market with the maximum devaluation of the dollar at 2%.

(Source: TBKTVN, http://lawyer-vietnam.com/?cat=3&sub=343&type=14&news=494)

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