State Bank continuously pumps and withdraws money, interest rates on VND go up

In the open market, the operator withdrew VND8,600 billion for a 28-day term, with an interest rate of 3.5%. The winning bid volume this time was VND2,000 billion higher than the previous day. Meanwhile, in the opposite direction, the State Bank of Vietnam pumped out nearly VND10,000 billion. Two members won the bid for this volume for a 7-day term, with an interest rate of 4%/year.

In the interbank market, VND interest rates increased by 0.2 - 0.4% compared to the beginning of the month. On April 11, overnight VND interest rates increased to 3.85%/year, 1 week 3.98%/year, 2 weeks 3.87%/year, 1 month 3.69%/year, 3 months 3.97%/year, 6 months 4.76%/year... This has helped reduce VND and USD interest rates to 1.2 - 2.6%. USD interest rates in the interbank market fluctuated from 5.28 - 6.05%/year.

Interest rates on the dong are about to increase.

The transaction interest rates between banks are higher than savings in VND. Banks currently mobilize non-term savings with interest rates from 0.1 - 0.2%/year, 1 month from 1.6 - 3.1%/year, 3 months from 1.9 - 3.5%/year, 6 months from 3 - 4.5%/year, 12 months from 3.7 - 5.3%/year. Some banks have recently increased savings interest rates from 0.1 - 0.5%/year.

According to forecasts from UOB Vietnam, the VND, and other currencies, are likely to appreciate again against the USD in the second half of 2024 when USD interest rates may be cut while VND interest rates are unlikely to decrease further and will increase again. UOB expects a stronger domestic economic recovery, especially from the manufacturing and retail consumption sectors, which will support VND interest rates to approach a more reasonable level compared to overall growth and inflation in a developing market like Vietnam.

Source link: https://thanhnien.vn/ngan-hang-nha-nuoc-bom-hut-tien-lien-tuc-lai-suat-tien-dong-di-len-185240412180413701.htm