Economic news review May 27

The central exchange rate increased by 4 VND, the VN-Index increased by 5.75 points, the State Bank stopped auctioning gold bars and will implement an alternative stabilization plan as soon as possible, expected to start from June 3... are some notable economic news on May 27.

Economic news review

Domestic news

In the foreign exchange market on May 27, the State Bank listed the central exchange rate at 24,268 VND/USD, an increase of 4 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 25,450 VND/USD, down 27 VND compared to the session on May 24.

The dollar-dong exchange rate on the free market increased by 20 VND for buying and 70 VND for selling, trading at 25,750 VND/USD and 25,840 VND/USD.

On May 27, the average interbank interest rate in VND decreased by 0.05 percentage points for overnight terms while increasing by 0.02 - 0.03 percentage points for remaining terms of 1 month or less compared to the session at the end of last week; specifically: overnight 5.10%; 1 week 5.30%; 2 weeks 5.38% and 1 month 5.48%.

The average interbank USD interest rate remained unchanged for short terms while decreasing by 0.01 percentage point for 2-week and 1-month terms, trading at: overnight 5.30%; 1-week 5.33%; 2-week 5.39%, 1-month 5.42%.

Government bond yields in the secondary market fluctuated in opposite directions; closing at: 3-year 1.90%; 5-year 2.06%; 7-year 2.36%; 10-year 2.90%; 15-year 3.05%.

In the open market operations, on the mortgage channel, the State Bank of Vietnam bid 10,000 billion VND with a term of 14 days, the interest rate remained at 4.5%. There were 6,557.17 billion VND won in the bid, there were 151.13 billion VND matured. The State Bank of Vietnam bid 28-day SBV bills, bidding for interest rates. There were 200 billion VND of bills won in the bid with the interest rate remained at 4.2%, no bills matured.

Thus, the State Bank of Vietnam pumped a net VND6,206.04 billion into the market, the volume of treasury bills circulating in the market increased to VND52,990 billion, the volume on the mortgage channel increased to VND104,377.34 billion.

On the stock market yesterday, the indices continued to struggle around the reference level, but managed to close the session in green. At the end of the session, VN-Index increased by 5.75 points (+0.46%) to 1,267.68 points; HNX-Index added 1.11 points (+0.46%) to 242.83 points; UPCoM-Index inched up 0.47 points (+0.50%) to 94.87 points. Market liquidity decreased compared to the previous session with a trading value of nearly VND 19,700 billion. Foreign investors net sold more than VND 550 billion on all three exchanges.

According to the State Bank of Vietnam, from May 27, in order to continue effectively implementing the instructions of the Government and the Prime Minister on handling the high difference between domestic SJC gold bar prices and world prices, the State Bank of Vietnam will adjust the gold market stabilization plan. Accordingly, the State Bank of Vietnam will stop bidding for gold bar sales and will implement an alternative stabilization plan as soon as possible, expected to start from June 3, 2024.

International news

The Ifo survey said its German business confidence index stood at 89.3 points in May, flat from April and not quite up to the expected 90.4. Most companies said they were dissatisfied with the current business situation, but their outlook for the future was improving. Manufacturing, trade and construction were all recovering, although the service sector was slightly affected.

In an interview yesterday, May 27, the chief economist of the European Central Bank (ECB), Philip Lane, said that if there are no major surprises, what the agency sees is enough to remove the highest level of tightening. Accordingly, the market expects the ECB to be able to cut the policy rate by 25 basis points from 4.75% at its next meeting on June 6.

The main reason for the faster fall in inflation in the eurozone than in the US is that the region has been hit harder by the impact of the Russia-Ukraine conflict, Lane said. However, he also argued that keeping policy rates tight in 2024 is necessary to keep inflation falling and not persistently above the 2.0% target.

Source: https://thoibaonganhang.vn/diem-lai-thong-tin-kinh-te-ngay-275-152070-152070.html