State Bank net withdraws, interbank interest rates decrease, black market USD remains high

On the mortgage channel yesterday (September 5), the State Bank offered VND2,000 billion for a 7-day term, VND10,000 billion for a 14-day term, VND4,000 billion for a 28-day term and VND1,000 billion for a 91-day term, with interest rates at 4.0%. There were VND1,525.34 billion in winning bids for a 7-day term, VND9,065.94 billion for a 14-day term, VND3,509.72 billion for a 28-day term, and no winning bid for a 91-day term. There were VND19,523.06 billion maturing.

Thus, yesterday, the State Bank withdrew a net VND 5,422 billion from the market through open market operations in yesterday's session.

In the interbank market yesterday, the average VND interest rate decreased by 0.05 - 0.25 percentage points for all terms of 1 month or less compared to the previous session. Accordingly, the overnight lending rate was 4.75%, down by 5% in the session on September 3.

This morning, the central exchange rate of the VND/USD currency pair announced by the State Bank for the session on September 4 was 25,248 VND, an increase of 2 VND compared to the previously announced rate. With a trading band of ±5% compared to the central exchange rate, the ceiling rate applied is 26,510 VND/USD and the floor rate is 23,986 VND/USD.

The USD selling price at banks this morning was basically stable, mainly at 26,510 VND/USD, an increase of 2 VND/USD in both buying and selling prices compared to the previous session. The USD exchange rate in the free market this morning was basically unchanged in both buying and selling prices compared to the previous session, the selling price was around 26,900 VND/USD.

This morning (9am - Vietnam time), the USD on the world market stood at 98.14 points, in a weakening trend as the possibility of the Fed cutting interest rates by 0.25% is getting closer. The betting rate on the possibility of the Fed cutting interest rates in the policy meeting taking place on September 16 and 17 has reached nearly 100%, up from the 87% bet last week (according to CME FedWatch data).

Recently, many investors around the world have reduced their holdings of USD and switched to speculating on gold due to concerns about US employment data. Last night ( Hanoi time), ADP announced a report that private sector employment fell to 54,000 new jobs created in August, much lower than the forecast of 65,000 jobs and the 106,000 jobs achieved in July.

Data on initial unemployment claims and the number of US workers laid off in August also increased. This shows that the US labor market is still weakening. This will cause the USD to be in a downtrend when holding demand is low. Today, the US will release the non- farm employment report. According to experts, the USD will continue to fall if the US employment data worsens.

Source: https://baodautu.vn/ngan-hang-nha-nuoc-hut-rong-lai-suat-lien-ngan-hang-giam-usd-cho-den-neo-muc-cao-d378904.html