Rates dip in Vietnam as demand subsides, focus on bond

Banks’ demand for Vietnamese dong and dollars eased in the past week and interbank rates on short-term loans fell, although longer-dated rates held steady, bankers said on Monday.


Dollar supply could be boosted if the government successfully sells a 10-year sovereign bond worth US$1 billion, with roadshows scheduled this week in Hong Kong, London, Boston and New York.

Fixings for overnight dong loans stood at 8.23 percent on Monday, down from 8.56 percent a week ago, and two-month loans eased to 11.40 percent from 11.44 percent.

But dealers noted six-month and one-year dong rates stood unchanged at 11.94 percent and 12 percent, respectively.

The State Bank of Vietnam said the value of dong transactions on the interbank market dropped nearly 30 percent to 13.17 trillion dong per day during the week of Jan. 8-14 from 18.67 trillion dong the previous week.

“In the past week, the foreign exchange market has seen positive moves, with foreign exchange liquidity significantly improved,” the central bank’s money market review said, citing “a large volume” of dollars banks were able to buy from major state firms.

In December the government ordered seven corporations to sell dollars to banks to help ease a dollar shortage. That followed a devaluation of the dong in November.

Dollar transactions on the interbank market dropped by one-third to a daily average of $321 million in the past week from $485 million the previous week following the increase in supply, the central bank said.

Source:thanhniennews.com/