|During the week, the value of US dollar transactions was $1.664 billion, up by $2.88 million against the previous week. — Photo baotintuc
HA NOI (VNS)— Transactions in the inter-bank market increased significantly over the last week due to rising demand, the State Bank of Viet Nam (SBV) reported.
According to the SBV's latest report, quoting statistics from credit institutions and foreign bank branches, the total value of Vietnamese dong transactions in the inter-bank market for the week ending August 21 reached some VND114.652 trillion (US$5.09 billion), up by VND10.062 trillion ($447.2 million) against the previous week.
During the week, the value of US dollar transactions was $1.664 billion, up by $2.88 million against the previous week.
Most of the dong transactions were overnight and 1-week terms, accounting for 42 per cent and 32 per cent of the total dong transactions, respectively.
Overnight and 1-week term transactions in dollars also represented 64 per cent and 20 per cent of the total dollar transactions, respectively.
The rising demand pushed up the dong average inter-bank interest rates for most terms for the past week, with the rates of overnight, 1-week and 1-month terms reaching 4.93 per cent, 4.95 per cent and 4.5 per cent per year, respectively.
Due to the inter-bank interest rate increase, some commercial banks asked the central bank to increase the dong deposit interest rates; however, the central bank said it would leave the rate unchanged.
According to commercial banks, the rise in inter-bank market transactions was due to businesses borrowing more in dong from banks to buy dollars as they are afraid that the dollar price will continue to rise.
They said this occurred even though many business contracts will mature next year.
However, the foreign exchange market has cooled down over the past two days after the central bank affirmed it would not further devalue the dong until the end of this year and may do so again in the first quarter of next year.
After listing at the VND22,547 cap set by the central bank earlier this week, most of the commercial banks have inched down the dollar/dong exchange rate for the past two days, quoting the selling rate at VND22,505-22,530 and the buying rate at VND22,440-22,460. — VNS