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Overnight interest rates fluctuate sharply on interbank market
Intellasia | Dau Tu Chung Khoan - 9/10/2010 1:30:02 PM
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Average inter-bank interest rates have begun to fluctuate strongly from late August 2010, according to the data of the State Bank of Vietnam. Meanwhile, the overnight interest rate was fairly stable and common less than at 7 percent per year in early June, 2010, but now it has increased sharply again.

Specifically, on August 31, only the overnight interest rate stood at 6.86 percent, but on September 1 it rose to 7.15 percent per year. By September 6, this rate also fell slightly to 7.11 percent.

However, in two days of September 7 and 8, the report of Thang Long Securities Company (TLS) showed that the overnight interest rates continued to increase strongly, up to 7.5 percent and especially up to about 8.3 percent - 8.4 percent per year on September 8.

That has been the most striking developments of the overnight interest rates after three months of relative stability.

Earlier, overnight interest rates of above 8 percent were recorded in the period of late November to early January 12/2009. And in the first week of 2010, from December 31, 2009 – January 07, 2010, the average overnight interest rate on inter-bank market was up to 11.31 percent, but quickly decreased to the average level of 9.07 percent per year in the following week.

Strong fluctuations of overnight interest rates maintained at high levels, over 8 percent to over 11 percent per year, from late 2009 to late February 2010. From early March 2010, this rate was gradually stable under 7 percent a year. In late April and May, the weekly average rate was at over 7 percent per year. And overnight interest rates only really became more stable in June till the end of August 2010, commonly standing at under 7 percent.
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