Topic: state bank

In the week from September 5-9, the interbank interest rate spiked to 7.5 per cent per annum at one point, the highest level since 2012, but then fell to 4.29 per cent thanks to regulating activities by the State Bank of Vietnam, helping to gradually stabilize system liquidity.

The State Bank of Vietnam (SBV) adjusted the selling price for USD from VND23,400 to VND23,700 on the afternoon of September 7. It also stopped listing the intervention buying rate. According to analysts, the decision to raise the selling price is mainly a defensive measure against upcoming US Fed interest rate hikes.

Analysts believe that growth in domestic credit cards will have an impact on the development of the country’s financial sector.

At the end of the session on September 6, the interbank interest rate for VND loans was 5.44 per cent per annum for an overnight term, only slightly lower than the last peak of 5.56 per cent per annum in February 2016. Liquidity in the system is still tight and interbank interest rates continue to increase despite the State Bank of Vietnam’s intervention.

Data from the State Bank of Vietnam (SBV) shows that after eight consecutive quarters of growth, individual deposits to banks had declined as of the end of June. Experts cite two reasons: the amount of idle funds held by businesses and individuals no longer being so abundant, and credit sources becoming limited as banks have hit their lending limits.

Data from the State Bank of Vietnam shows that as of the end of August, total credit at credit institutions in Ho Chi Minh City stood at over VND3.1 quadrillion ($132 billion), up 0.4 per cent compared to the end of July and 11 per cent compared to the end of 2021.

The Ministry of Finance has forecast that CPI will increase 3.37-3.87 per cent in 2022; higher than the forecast of 3.4-3.7 per cent from the General Statistics Office. The State Bank of Vietnam, meanwhile, has put inflation in the range of 3.7 per cent, ± 0.3 per cent.

The State Bank of Vietnam has reported that, on average, individuals deposit nearly VND1.8 trillion ($76.92 million) in banks every day. In the first half of the year, nearly VND320 trillion ($13.67 billion) was deposited. The figure is forecast to continue to rise towards the end of the year as deposit interest rates head upwards.

The State Bank of Vietnam (SBV) has issued Circular No. 10/2022/TT-NHNN stipulating procedures for registration and changes to the volume of non-government-guaranteed bonds issued to the international market by enterprises. Other content is in regard to foreign exchange management relating to foreign loans in the form of bond issuances to the international market complying with regulations on foreign borrowing and repayment by enterprises.

The interbank VND interest rate fell sharply during the week of August 8-12 from a large volume of bills maturing and money being pumped back into the market, resulting in the difference between VND and USD interest rates becoming negative. According to SSI Securities, the State Bank of Vietnam is implementing a relatively flexible monetary policy via open market operations in order to balance inflation, exchange rates, and interest rates.