Foreign Exchange Market:
During the trading session on November 21st, the State Bank of Vietnam (SBV) listed the central exchange rate at 23,915 VND/USD, a decrease of 39 dong compared to the previous session. The immediate purchase rate remained at 23,400 VND/USD, while the immediate selling rate was listed at 25,060 VND/USD, a decrease of 50 dong compared to the ceiling exchange rate. In the Interbank market (IB), the closing rate dropped by an additional 45 dong to 24,135 VND/USD. Meanwhile, the free market rate slightly decreased on the buying side and remained unchanged on the selling side, trading at 24,560 VND/USD and 24,650 VND/USD respectively.
Interbank Currency Market:
On November 21st, the average bidding interest rate for Vietnamese Interbank Market (VNIB) VND decreased by 0.06 percentage points in the 1-month term and remained stable in shorter terms. The average bidding interest rate for VNIB USD slightly increased across all terms. Government Bond yields decreased in most terms, closing at: 3Y 1.70%; 5Y 1.60%; 7Y 2.15%; 10Y 2.48%; 15Y 2.70%.
Open Market Operations:
In recent trading sessions, the SBV auctioned 1,000 billion VND on the collateral channel for a 7-day term, maintaining the interest rate at 4.0%. There was no winning bid volume, and no SBV bonds were tendered. On November 21st, there were 850 billion VND of maturing SBV bonds, reducing the total supply to 95,599.8 billion VND.
Stock Market:
The Vietnam stock market saw a slight increase in recent trading sessions. The VN-Index increased by 6.8 points (+0.62%) to 1,110.46 points; the HNX-Index added 2.03 points (+0.89%) reaching 229.80 points; the UPCoM-Index rose slightly by 0.09 points (+0.10%) to 86.22 points. Market liquidity remained low, with a trading value of nearly 17,185 billion VND. Foreign investors continued to net buy with a value of 481 billion VND across all three exchanges.
International News:
The Federal Reserve (Fed) maintains a “cautious” monetary policy stance. FOMC officials continue to be concerned about persistent inflation. In the U.S. real estate market, existing home sales declined slightly in October but were up by 4.1% compared to the same period last year. Andrew Bailey, Governor of the Bank of England (BoE), highlighted inflation risks and warned about potential interest rate hikes.
Exchange Rates on November 21st:
USD = 0.917 EUR (-0.27% d/d)
USD = 0.798 GBP (-0.26% d/d)
GBP = 1.149 EUR (+0.53% d/d)
Business and Privatization Information:
In the first 10 months of 2023, no new privatized enterprises emerged. In October, there were no divestments. Specifically, the state divested from 4 enterprises worth 8.8 billion VND, realizing 19 billion VND. Up to October 2023, 49 enterprises have been authorized for restructuring under the government’s project.
International Financial Market Information:
The Fed’s October 31st – November 1st meeting minutes showed concerns about inflation and a decision to maintain a “cautious” monetary policy. The Bank of England Governor warned about inflation risks and the possibility of raising interest rates.
Existing home sales in the U.S. decreased slightly in October but remained higher compared to the same period last year.
Bank of England Governor emphasized inflation risks and warned about potential interest rate hikes.
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Source: Vietnam Insider