TPO - The interbank overnight interest rate remained below 3% / year for most of the time in May. The VND exchange rate had the strongest fluctuation after stabilizing since the beginning of the year, surpassing on the region 23,400 VND / USD.
Tỷ giá VNA/UDS biến động bởi thương chiến Mỹ Trung
Exchange rate fluctuated the most since the beginning of the year
VND exchange rate has the most volatile month after maintaining stability since the beginning of the year. US-China trade tensions continue to escalate when negotiations fail in early May, causing the yuan to drop sharply by 2.54% against the dollar. China is now Vietnam's largest trading partner, bilateral import-export turnover accounts for a quarter of Vietnam's total trade turnover.
The strong devaluation of the yuan has caused a huge fluctuation in Vietnam's exchange rate market in May, the market exchange rate has increased from 23,200 on April 17, to 23,420 in the free market, equivalent to 0.95% increase. The interbank exchange rate is currently trading around VND 23,415, the selling price of USD at Vietcombank is closed on May 31, close to VND 23,500, at VND 23,475 / USD.
The central exchange rate of the SBV increased by VND 37 (+ 0.2%) compared to the end of April, to VND 23,065 / USD. However, the fluctuation of exchange rates in the coming time is expected to be controlled by the following factors: Foreign exchange reserves are at a high level of about US $ 66 billion, equivalent to over 3 months of imports, the SBV actively bought 8 , $ 35 billion from the beginning of the year to raise national reserves; Large amounts of foreign currency from foreign direct investment flows as well as FII capital invested in SOEs divested iii) Chinese government intervention to support the RMB exchange rate before the psychological mark of 7 yuan / USD.
Interbank interest rates remained 3% / year
The interbank overnight interest rate remained below 3% / year for most of the time in May. In the second half of May 2019, the State Bank issued 150 trillion bills, increasing the amount of bills issued in May. At VND203 trillion, while there were VND 168 trillion of SBV bills matured, the SBV net withdrew VND35 trillion via T-bills. No amount of OMO issued 2 weeks at the end of May
SBV attracted VND 305 billion through repurchase operations, in general, the SBV net withdrew for the 4th consecutive month, approximately VND35 trillion on the open market, raising the net withdrawal from the banking system to VND161 trillion from the beginning of the year until now.
Interbank interest rates for overnight term in the last 2 weeks of May maintained below 3% / year. The interbank overnight interest rate closed on May 31 at 2.8% / year, sharply reduced by 90 basis points compared to the average in April. Interbank interest rate for 01 week, 02 weeks, 1 month decreased 03, 09, 10 basis points compared to the end of April, respectively at 2.98%, 3.18% and 3.38% / year.