Vietnam Daily News

Interbank average overnight interest rate exceeds 14.5pct pa

Written by Dailynews.vn Wednesday, 14 December 2011 15:44

The interbank average interest rate on December 8 increased in almost all terms from December 7 whereby the 12-month term saw the highest-rise in past month to stand at 21 percent per annum (p.a.) on December 8, the State Bank of Vietnam (SBV) reported. Particularly, the interbank overnight interest rate surged 0.63 percent from 13.89 percent p.a. (on December 7) to 14.52 percent p.a. on December 8. This is the first time the average interest rate for this term has exceeded 14 percent p.a. since November 14, 2011, according to the updated report of the local online newspaper Gafin.vn. The interest rate for terms of 1-week and 2-weeks increased 0.17 percent and 0.63 percent while the interest rate for 12-month term soared 0.6 percent to 21 percent p.a., the highest since November 8, 2011. Meanwhile, the interest rate for terms of 1-, 3- and 6-months decreased 2.29 percent, 1.91 percent and 0.29 percent respectively hereby 3-month term on December 8 was at 11.35 percent p.a. This is the first time, this term has slipped to below 12 percent p.a. since November 22, 2011. According to the central bank, the total interbank trading turnover on December 8 reached over 29.067 trillion dong, of which, overnight term made up 12.1 trillion dong, or 41.6 percent of the total trading value. The demand for 12-month term was only 200 million dong. In the week between December 5 and 9, the central bank pumped 31.363 trillion dong while withdrawing 26.355 trillion dong, resulting in a net injection of over five trillion dong on open market operations (OMO). According to the local online newspaper NDHMoney, this is the highest net injection week during past seven weeks (since the week between October 17 and 21), after a net withdrawal of over 2.3 trillion dong in the previous week.

Source: www.intellasia.net/news/articles/finance/111350781.shtml