Economic news review June 17

The central exchange rate increased by 10 VND, the VN-Index decreased by 5.14 points, or the Government just issued a Decree extending the deadline for paying VAT, corporate income tax, personal income tax and land rent in 2024... those are some notable economic news on June 17.

Economic news review

Domestic news

In the foreign exchange market on June 17, the State Bank listed the central exchange rate at 24,259 VND/USD, an increase of 10 VND compared to the session at the end of last week.

The buying and selling prices of USD were kept unchanged by the State Bank of Vietnam at 23,400 VND/USD and 25,450 VND/USD, respectively.

On the interbank market, the dollar-dong exchange rate closed at 25,454 VND/USD, unchanged from the session on June 14.

The dollar-dong exchange rate on the free market increased by 20 VND for buying and 10 VND for selling, trading at 25,750 VND/USD and 25,820 VND/USD.

On June 17, the interbank money market, the average interbank VND interest rate decreased by 0.03 - 0.05 percentage points for short terms while increasing by 0.02 percentage points for 2-week terms and remaining unchanged for 1-month terms compared to the session at the end of last week; specifically: overnight 4.40%; 1 week 4.55%; 2 weeks 4.75% and 1 month 4.90%.

The average interbank USD interest rate increased by 0.01 percentage point at all terms, trading at: overnight 5.28%; 1 week 5.34%; 2 weeks 5.40%, 1 month 5.42%.

Government bond yields in the secondary market fluctuated in opposite directions; closing at: 3-year 1.90%; 5-year 1.97%; 7-year 2.27%; 10-year 2.80%; 15-year 2.98%.

In yesterday's open market operations, on the mortgage channel, the State Bank of Vietnam bid 3,000 billion VND, 7-day term, interest rate kept at 4.5%. There was no winning bid, 894.57 billion VND matured. The State Bank of Vietnam bid 28-day SBV bills, interest rate bidding. There were 2,650 billion VND won with interest rate kept at 4.25%, 800 billion VND matured bills.

Thus, the State Bank of Vietnam net withdrew VND 2,744.57 billion from the market, the volume of treasury bills circulating in the market was VND 70,560 billion, the volume on the mortgage channel was VND 4,212.27 billion.

The stock market fluctuated yesterday, trading almost below the reference level for the entire session. At the end of the session, VN-Index decreased by 5.14 points (-0.40%) to 1,274.77 points; HNX-Index lost 0.80 points (-0.33%) to 243.16 points; UPCoM-Index increased by 0.03 points (+0.04%) to 98.09 points. Market liquidity decreased slightly with a trading value of nearly VND25,400 billion. Foreign investors net sold more than VND740 billion on all three exchanges.

The Government has just issued Decree No. 64/2024/ND-CP dated June 17, 2024 extending the deadline for paying VAT, corporate income tax, personal income tax and land rent in 2024. Applicable subjects: enterprises, organizations, households, business households, individuals operating in economic sectors such as agriculture, forestry and fisheries, manufacturing and processing of some products, construction, publishing, crude oil exploitation and natural gas, beverage production, drainage and wastewater treatment, transportation, warehousing, labor and employment, tourism, manufacturing of industrial products prioritized for development support, micro-enterprises...

Deadline: (i) extension of 2-5 months depending on the time of tax payment for VAT arising from May to September 2024; (ii) extension of 3 months for payment of corporate income tax for the second quarter; (iii) extension of 2 months for payment of land rent for 50% of the land rent arising in 2024 of agricultural land leasing units...

International News

The People's Bank of China (PBOC) said in a meeting yesterday, June 17, that it would continue to keep the medium-term lending facility (MLF) rate unchanged at 2.5 percent. Markets expect the PBOC to also maintain the one-year and five-year LPR benchmark rates at 3.45 percent and 3.95 percent, respectively, at its meeting this Thursday.

Some experts say that although the PBOC still has room to continue lowering its operating interest rates, this decision will be relatively challenging as the USD is putting pressure on the currencies of many countries.

Goldman Sachs predicts that the PBOC may lower interest rates and cut reserve requirements in the third quarter of 2024 to support the economy to reach its growth target.

Regarding the Chinese economy, industrial output in the country increased by 5.6% year-on-year in May, lower than the previous month's 6.7% increase and also lower than the forecast of 6.2%. In contrast, retail sales in China increased by a strong 3.7% year-on-year last month, faster than the 2.3% increase in April and also surpassing the expected 3.0% increase.

Finally, average home prices in China fell 0.71% m/m in April, the sharpest decline since October 2014. Compared to the same period in 2023, new home prices fell about 4.3% and old home prices fell 7.5%.

UK house prices were flat in June. The UK House Price Index (HPI) was flat in June after rising 0.8% the previous month, according to Rightmove, suggesting a cooling of the housing market after a recent upswing.

Source: https://thoibaonganhang.vn/diem-lai-thong-tin-kinh-te-ngay-176-152677-152677.html