Inter-bank rate remains low due to strong liquidity
15-06-2016 16:54:49+07:00
Inter-bank rate remains low due to strong liquidity
The inter-bank rate has been stable at a low level of roughly 2 per cent per year for the past month as a result of the banking system's liquidity.
According to reports from the State Bank of Viet Nam, the average overnight rate last week stood at 1.65 per cent per year. The rates for one week and two week tenures were 1.9 per cent and 2.32 per cent, respectively.
The inter-bank rate in the week ending May 27 even dropped sharply to 0.66 per cent per year, the lowest level for the past several years.While the rate sometimes dropped sharply over the past three years, it fluctuated around 1 per cent.
The Bao Viet Securities Company (BVSC) attributed the drop to the significant improvement in the banking system's liquidity.
According to BVSC analysts, the central bank bought roughly US$8 billion in the past three months to increase its foreign reserves. Thus, roughly VND178 trillion was pumped into the market, strengthening the liquidity of the banking system.
Although the inter-bank rate inched up again in the first week of June, BVSC forecast the liquidity would remain positive.
