Wednesday, July 24, 2024 12:11:10 AM - Markets open
VN-INDEX 1,231.81 -22.83/-1.82%
HNX-INDEX 234.60 -3.78/-1.59%
UPCOM-INDEX 94.40 -1.25/-1.31%
Overnight interbank rate hits nine-month record high
Vietnam News - 2/26/2024 2:40:18 PM
 (0 ratings. You must sign in to rate.)
 Overnight interest rate in the interbank market has surged to more than 4 per cent, the highest level in the past nine months, data from the State Bank of Vietnam showed.
 
The rate on Wednesday had increased by nearly 4 times against the end of last week, from 2.15 per cent to 4.14 per cent. It meant after just one trading session, the rate nearly doubled and reached its highest level since the end of May 2023. It was much higher than the peak level of 2.38 per cent recorded during the peak payment period near the Lunar New Year.
 
With the surge, the rate for overnight term is currently even higher than that of one-week to three-month terms.
 
In the interbank market, overnight term accounts for up to 90 per cent of total transaction value.
 
Along with the overnight term, interest rates at two other key terms also increased sharply compared to the end of last week, of which one-week term was up from 1.27 per cent to 3.81 per cent; two-week term was up from 1.39 per cent to 3.02 per cent; and one-month term was up from 1.85 per cent to 2.55 per cent.
 
According to experts, the sharp surge of the overnight rate, along with high transaction turnover, meant liquidity of the banking system is showing signs of shortage, but it is only in the short term and it will likely cool down soon in the coming trading sessions.
 
Interbank interest rates have increased significantly after credit growth unexpectedly accelerated in the last month of 2023. In December 2023 alone, credit of the banking system surged by up to 4.35 per cent compared to the previous month, bringing credit of the whole year to 13.5 per cent.
 
Experts expect the sharp increase in overnight interbank interest rates will contribute to reducing pressure on domestic exchange rates when the US dollar has strongly recovered in the international market. The greenback price is currently listed at VNĐ24,390 per dollar for buying and VNĐ24,790 per dollar for selling, an increase of VNĐ190 compared to before the Lunar New Year holiday.
 
In a newly released report, analysts from the Vietcombank Securities Company (VCBS) forecast the Vietnamese đồng may still devalue against the dollar when interest rates continue to break deep into the bottom zone.
 
The development of the exchange rate will depend largely on foreign currency supply from direct and indirect investment cash flows, and remittances, VCBS analysts noted. — VNS
 
Read original article here
Newer News
22/07 Consumer lending faces challenges
19/07 Savings of individual customers at banks hit record high
18/07 Petrol distributors not allowed to buy from each other: Draft
18/07 MoF considers withdrawing 50 per cent car registration fee reduction proposal
17/07 H1 State budget revenue increases over 17%: MoF
17/07 HCM City Tax Department refunds VNĐ4.7 trillion of VAT
16/07 Mobile Money users in Vietnam rise rapidly
16/07 Cheap money period in Vietnam forecast to come to an end
16/07 Taxing gold buyers is a tax-on-tax, say experts
15/07 Compulsory e-signature might be a cost burden: banking association
Older News
26/02 More policy rate cuts forecast in 2024 to support economic growth
23/02 Banks ask central bank to extend June 30 payment deadline
21/02 Credit growth declines by 0.6% in first month of 2024
19/02 Foreign exchange rate forecast to be under control in 2024
19/02 Many people buy gold on God of Wealth Day, gold prices down
16/02 Changes to Law on Credit Institutions reduce ownership limits in banks
16/02 Central bank pushes others to boost lending from start of New Year
16/02 Asia - biggest source of overseas remittances to HCM City in 2023
27/12 Bank bad debts forecast to remain under great pressure in 2024
27/12 Domestic gold prices hit record-breaking VNĐ80 million per tael
 
Newsletter Signup
Top Stories
VCCI recommends mineral mining rights be granted through auction and bidding
Central bank works to raise interbank rates and ease forex market
Inflation a concern following salary increases
National Council for Sustainable Development established
Việt Nam, Cambodia look forward to $20 billion trade
Market Update
Last updated at 3:05:00 PM
VN-INDEX 1,231.81 -22.83/-1.82%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.