During the week from December 16 to December 20, the interbank interest rates of VND dropped sharply for all 5 sessions with terms of less than 1 month. Accordingly, all short terms have fallen below 4% / year; in which the overnight interest rate dropped below 3%.
In detail, at the end of the week session on December 20, the overnight interbank interest rate of VND was around 2.30%, down by 1.40 percentage points; that of 1-week term was 2.73%, down 1.05 percentage points; that of 2-week term was 3.21%, down 0.74 percentage points and that of 1-month term was 3.80%, down 0.28 percentage points compared to the previous week.
Meanwhile, interbank USD interest rates increased in the past week for all terms of 1 month or less. By the end of the week of December 20, the overnight interbank USD interest rate stood at 1.79%, up 0.04 percentage points; that of 1-week term is 1.88%, up 0.02 percentage points, that of 2-week term is 1.95%, up 0.03 percentage points and that of 1-month term is 2.12%, up 0.04%.
Also in the last week, in the open market, the State Bank reduced the offer on the mortgage channel to VND 15,000 billion, all for 7-day terms, the bid interest rate was 4.0%. However, there was no winning volume during the week, while VND 34,593 billion matured on this channel.
Therefore, the State Bank net withdrew VND 34,593 billion from the market through the mortgage channel last week, bringing the circulating volume on this channel to VND 19,520 billion, compared to the recent peak support level of up to 72,000 billion dong.
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