SBV posts 2.611tr dong net withdrawal on OMO on August 28
29-08-2012 13:21:59+07:00
SBV posts 2.611tr dong net withdrawal on OMO on August 28
Data from Reuters showed that the State Bank of Vietnam (SBV) pumped 2.389 trillion dong on open market operations (OMO) on August 28 for 7-day term at the interest rate of 8 percent per annum (p.a.).
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On August 28, the first loan worth five trillion dong pumped on OMO on August 21 also fell due. Thus, the central bank posted a net withdrawal of 2.611 trillion dong on OMO on August 28.
The money injection of five trillion dong on OMO one week earlier is said to support liquidity for some credit institutions, especially Asia Commercial Bank (ACB) due to negative impacts from the arrest of banking tycoon Nguyen Duc Kien, the founder of ACB, which prompted depositors to en masse withdraw capital from ACB.
The central bank’s net withdrawal move after six days in a row of net injections indicated that liquidity of credit institutions has been stable again.
On August 29, more than 13 trillion dong being pumped by the central bank on OMO in previous weeks is to fall due and the borrowers will have to repay this amount of money to the central bank.
On the interbank market, the interest rate plunged sharply in the first two days of this week whereby overnight and one week terms were lower than a day earlier by 1.08-1.37 percent p.a.
Particularly, the interbank overnight interest rate was only 5.56 percent p.a., down 1.08 percent from a day earlier, one week term was at 6.06 percent p.a., down 1.37 percent on day and one month term dropped 0.66 percent p.a. to 7.88 percent p.a.
VnEconomy
