Overnight Interest Rate Hits 8-Month Record High in Vietnam
Average overnight interest rate on the inter-bank market surged to an eight-month record high of 8.11% per annum in the week ended Oct 28, from 7.3% on in the previous week, the State Bank of Vietnam said in a report.
The rate stood high at 8%-11% per annum from late 2009 until late Feb 2010 and was then kept stable at below 7% in March. It continued the stable trend at below 7% per annum between June and Aug after slightly increasing to above 7% in April and May.
Last week, average inter-bank loan rates were up for almost all terms, excluding three-month and demand loans whose rates fell slightly. Rates for one-week loans soared 1.12% to 9.22% per annum while those for others saw increases of between 0.81% and 0.96%.
The highest dong lending interest rate was recorded at 12% per annum and the lowest at 6.5% last week, excluding demand term.
Regarding the U.S. dollar-denominated loans, interest rates reportedly increased by between 0.12% and 0.53%.
The SBV said in the report that the total trading value of dong and U.S. dollar on the inter-bank market last week were slightly up to VND122.06 trillion and $2.79 billion, respectively.
Overnight trading value of dong and U.S. dollar was VND46.461 trillion and $1.771 billion last week, accounting for 38% and 63% of the total figure, respectively, the central bank said on its website. (SBV)
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