The State Bank continuously pumps and withdraws money, causing interest rates on Vietnamese Dong to rise.

In the open market, the operator withdrew VND8,600 billion for a 28-day term, with an interest rate of 3.5%. The winning volume this time was VND2,000 billion higher than the previous day. Meanwhile, in the opposite direction, the State Bank pumped out nearly VND10,000 billion. 2 members won the bid for this volume for a 7-day term, with an interest rate of 4%/year.

In the interbank market, the VND interest rate increased by 0.2 - 0.4% compared to the beginning of the month. On April 11, the overnight VND interest rate 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 the VND and USD interest rates to shorten to 1.2 - 2.6%. The USD interest rate in the interbank market fluctuates from 5.28 - 6.05%/year.

Interest rates on Vietnamese 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 will have little chance of falling further and will increase again. UOB expects a stronger domestic economic recovery, especially from the manufacturing and retail 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