Interbank interest rates increase sharply

In the interbank market last week, interest rates increased sharply after falling to a more than 1-year low in most terms.

Accordingly, the overnight interest rate increased sharply by 2.54%, to 4.37%/year. The 1-week term also increased sharply by 2.17% to 4.47%; the 2-week term was 4.47%, an increase of 0.6%. The 1-month interest rate also increased by 4.5%, an increase of 1.05%; the 3-month term increased by 4.97%, an increase of 0.46%.

Regarding the open market (a specific tool for the State Bank to regulate currency), last week, in the mortgage channel, there were 70,190 billion VND in winning bids for terms of 7, 14 and 91 days, with an interest rate of 4%/year. Of which, in the session on June 27, there were 40,365 billion VND in winning bids, the highest in many months. Last week, only 7,832 billion VND matured on the mortgage channel, bringing the total circulation on the mortgage channel to 90,318 billion VND.

Interbank interest rates increase again. Illustrative photo

The State Bank also restarted the treasury bill channel after a nearly 4-month suspension. The reopening of the treasury bill issuance channel shows the direction of draining liquidity from the banking system, in the context of the USD/VND exchange rate being at a record high.

Accordingly, the State Bank has withdrawn a net of nearly VND22,500 billion in 3 sessions (June 24, 25 and 26) through the treasury bill channel. Thus, the State Bank still injected a net of VND39,858 billion from the market last week through the open market channel.

Source: https://hanoimoi.vn/lai-suat-lien-ngan-hang-tang-manh-707168.html