|The central bank net injected more than VNĐ47.5 trillion (US$2 billion) into the open market operation. — Photo ABBank|Viet Nam News
HÀ NỘI — The State Bank of Việt Nam (SBV) net injected more than VNĐ47.5 trillion (US$2 billion) into the open market operation (OMO) last week to support the liquidity of the banking system amid rising capital demands at the end of the year.
According to the latest report from the Saigon Securities Company, the injection was foreseeable as the SBV also pumped a large amount of money to support the liquidity of commercial banks at the end of 2016 and 2017, when the demand for cash increased sharply in the weeks ahead of Tết (Lunar New Year) - the country’s biggest holiday.
The SBV’s decision to continuously buy a large amount of US dollars in the past week also supported the supply of Vietnamese đồng.
The good liquidity helped overnight interest rate of đồng loans in the inter-bank market last week inch down to 4 per cent from 4.2 per cent in the previous week. One-week and two-week interest rates also dropped by 15 basis points to 4.3 per cent and 4.5 per cent, respectively.
Commercial banks also kept their interest rates of đồng deposits steady, staying at 6.8-8 per cent per year for 12-13 month terms.
According to SSI analysts, the net injection of the SBV will ensure the good liquidity of the banking system during the peak week before Tết so interest rates will be stable at the current level before inching down in the weeks after Tết. — VNS