ID :
13326
Tue, 07/22/2008 - 12:09
Auther :
Shortlink :
http://m.oananews.org//node/13326
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Monetary market shows signs of rally
Hanoi (VNA)- After months of complicated developments, the monetary market showed positive signs in the week ending July 20 as supply-demand in hard currencies balanced and banking loan interest rates dropped.
The State Bank of Vietnam (SBV) has reported that export enterprises began selling hard currencies to commercial banks, enabling them to become self-sufficient and reducing dependence on the SBV supply.
SBV said "orders from commercial banks has dropped", although it continued selling foreign money to banks to meet the demand for imports essential to the national economy.
The foreign exchange market has also signalled a positive turn when most commercial banks listed selling rates below the ceiling level and transactions were conducted within the allowed band, mostly between 10 and 15 VND for one US dollar in difference.
The exchange rates on the black market continued reducing to 16,890 VND for one dollar.
Banking loans interest rates have also been reducing, with 21 percent a year being the highest in VND.
Reports from 39 credit institutions showed the inter-bank market'stransaction interest rates in VND for all categories from mid-July have dropped except the one and two week terms.
The overnight interest rate stood at 20.15 percent a year while the rate for the one-month term was 17.50 percent a month. One week and two week terms saw a slight rise in interest rates at 20.53 percent and 21 percent a year, respectively.
The banking deposit rates stand stable at 17 to 19.1 percent annually, depending on their terms ranging from three and 12 months. State-run banks fixed the annual rates at a minimum of 17 percent and maximum of 18 percent while commercial banks offered higher rates between 18.7 percent and 19.1 percent a year.
The SBV continued opening sessions to buy valuable papers with theseven-day term at an annual interest rate of 15 percent in an effort to help commercial banks maintain liquidity for businesses.
Each session saw transaction values reach between 4 and 12 trillion VND, which has been used for recapitalising.
The positive signs of the monetary market have been partially attributed to the SBV's tight control over creditors' operations.
Last week, SBV discovered one branch director and two staff members of the Techcombank violating interest rate handling rules and requested the bank consider their dismissal.-Enditem
The State Bank of Vietnam (SBV) has reported that export enterprises began selling hard currencies to commercial banks, enabling them to become self-sufficient and reducing dependence on the SBV supply.
SBV said "orders from commercial banks has dropped", although it continued selling foreign money to banks to meet the demand for imports essential to the national economy.
The foreign exchange market has also signalled a positive turn when most commercial banks listed selling rates below the ceiling level and transactions were conducted within the allowed band, mostly between 10 and 15 VND for one US dollar in difference.
The exchange rates on the black market continued reducing to 16,890 VND for one dollar.
Banking loans interest rates have also been reducing, with 21 percent a year being the highest in VND.
Reports from 39 credit institutions showed the inter-bank market'stransaction interest rates in VND for all categories from mid-July have dropped except the one and two week terms.
The overnight interest rate stood at 20.15 percent a year while the rate for the one-month term was 17.50 percent a month. One week and two week terms saw a slight rise in interest rates at 20.53 percent and 21 percent a year, respectively.
The banking deposit rates stand stable at 17 to 19.1 percent annually, depending on their terms ranging from three and 12 months. State-run banks fixed the annual rates at a minimum of 17 percent and maximum of 18 percent while commercial banks offered higher rates between 18.7 percent and 19.1 percent a year.
The SBV continued opening sessions to buy valuable papers with theseven-day term at an annual interest rate of 15 percent in an effort to help commercial banks maintain liquidity for businesses.
Each session saw transaction values reach between 4 and 12 trillion VND, which has been used for recapitalising.
The positive signs of the monetary market have been partially attributed to the SBV's tight control over creditors' operations.
Last week, SBV discovered one branch director and two staff members of the Techcombank violating interest rate handling rules and requested the bank consider their dismissal.-Enditem
