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Market Watch: Vietnam Financial Market Overview from November 20 – November 24

by Asia Insider

Foreign Currency Market:

In the week spanning from November 20 to November 24, the domestic foreign currency market witnessed notable fluctuations. The State Bank, in the first three sessions, sharply decreased the central exchange rate, followed by a slight increase. By the closing on November 24, the central exchange rate reached 23,927 VND/USD, marking a decrease of 45 VND from the previous weekend session. The spot buying exchange rate remained at 23,400 VND/USD, while the spot exchange rate for the weekend session settled at 25,073 VND/USD, 50 VND below the exchange rate ceiling.

The interbank exchange rate experienced initial decline but rebounded towards the end of the week. Closing on November 24, the interbank exchange rate concluded at 24,268 VND/USD, reflecting a 20 VND increase from the preceding weekend session.

Free market exchange rates remained relatively stable throughout the week. By the end of the session on November 24, the free exchange rate decreased by 60 VND on the buying side and 40 VND on the selling side, standing at 24,440 VND/USD and 24,560 VND/USD, respectively.

Interbank Currency Market:

In the VND interbank market, interest rates witnessed a general decrease for terms of 1M or less during the week. As of November 24, interest rates were as follows: ON 0.20% (unchanged), 1W 0.30% (-0.10 dpt), 2W 0.49% (-0.11 dpt), 1M 0.98% (-0.24 ppt).

USD interbank interest rates experienced a slight decrease across all terms, with the November 24 weekend session rates at ON 5.06% (-0.01 ppt), 1W 5.14% (-0.03 dpt), 2W 5.25% (-0.02 ppt), and 1M 5.35% (-0.02 ppt).

Open Market:

On the open market, the State Bank offered a 7-day term on the mortgage channel with a volume of 5,000 billion VND and an interest rate of 4.0%, with no winning bid volume or circulating volume.

The SBV refrained from offering SBV bills for bidding, resulting in a net injection of VND 25,549.9 billion into the market. The total volume of T-bills circulating in the market decreased to VND 71,749.9 billion.

Bond Market:

Social Policy Bank offered 4,000 billion VND of Government Bonds on November 20, with a winning volume of 2,800 billion VND (70%). Interest rates for the 10Y and 15Y terms were 3.0% (-0.15 ppt) and 3.4% (-0.2 ppt), respectively.

On November 22, the State Treasury offered VND 4,000 billion in government bonds with a 100% winning rate. Interest rates for the 10Y, 15Y, and 30Y terms were 2.37% (-0.10 ppt), 2.59% (-0.11 ppt), and 3.05% (no change), respectively.

This week, the State Treasury offered 6,000 billion VND in government bonds.

The secondary market’s Outright and Repos transactions averaged 7,790 billion VND/session, up from the previous week. Government bond yields continued to decrease, with rates on November 24 around 1Y 1.65% (-0.06 ppt), 2Y 1.66% (-0.06 ppt), 3Y 1.67% (-0.06 ppt), 5Y 1.73% (-0.05 ppt), 7Y 2.15% (+0.001 dpt), 10Y 2.41% (-0.11 ppt), 15Y 2.63% (-0.07 ppt), 30Y 3.16% (-0.04 ppt).

Stock Market:

In the week from November 20 to November 24, the stock market experienced minimal fluctuations, closing with VN-Index at 1,095.61 points (-0.51%), HNX-Index at 226.10 points (-0.19%), and UPCom-Index at 84.99 points (-1.20%).

Market liquidity remained consistent with an average transaction value of over 20,500 billion VND/session. Foreign investors continued to net sell nearly 470 billion VND across all three exchanges.

Source: Vietnam Insider

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