Chủ đề: interest rate

With money being continually added, the average trading interest rate in VND in the interbank market remains low while the transaction value of government bonds on the secondary market rose 42 per cent compared to last week. The State Treasury is expected to issue government bonds during the fourth quarter, but anticipated buying demand is not large, so the winning yield is expected to remain flat.

With abundant liquidity in the system and the continuous addition of VND from foreign currency repurchase contracts, interbank interest rates are expected to not fluctuate to any great extent. In the long term, however, they may be under a degree of upwards pressure, especially at the end of the year.

In 2020, the State Bank reduced the operating interest rate 3 times, but according to Mr. Dao Minh Tu, Deputy Governor of the State Bank of Vietnam, now is not a suitable time to lower the operating interest rate. According to the Deputy Governor, the reason is because the State Bank is implementing many synchronous solutions such as lowering interest rates and restructuring loans.

As a popular destination for FDI, Vietnam also welcomes a large inflow of foreign currencies. The country’s banking system has maintained low interest rates, which is in line with ongoing trends, as central banks around the world are applying loosened monetary policy.