Foreign Exchange Market Update: The central exchange rate experienced a downward trend during the week from October 30 to November 3, with the State Bank adjusting it.
By the close of November 3, the central exchange rate stood at 24,084 VND/USD, marking a 15 VND decrease compared to the previous weekend session. The State Bank maintained the spot buying exchange rate at 23,400 VND/USD. During the weekend session, the spot exchange rate was listed at 25,238 VND/USD, which was 50 VND lower than the exchange rate ceiling.
The Interbank exchange rate saw fluctuations throughout the past week. At the end of the November 3 session, the Interbank exchange rate closed at 24,535 VND/USD, showing a 40 VND decrease compared to the previous weekend session.
In the free market, exchange rates remained somewhat volatile over the same period. On November 3, the free exchange rate remained stable on the buying side but decreased by 30 VND on the selling side compared to the previous weekend session, trading at 24,550 VND/USD and 24,600 VND/USD, respectively.
Interbank Currency Market: From October 30 to November 3, VND Interbank interest rates decreased for all terms of 1 month or less. By the close of November 3, VND Interbank interest rates were as follows: ON 1.0% (-0.36 ppt); 1W 1.32% (-0.36 ppt); 2W 1.60% (-0.34 ppt); 1M 2.22% (-0.38 ppt).
USD Interbank interest rates experienced a downward trend across all terms. In the weekend session on November 3, USD Interbank interest rates closed at: ON 5.03% (-0.07 ppt); 1W 5.13% (-0.08 ppt); 2W 5.24% (-0.07 ppt); and 1M 5.34% (-0.06 ppt).
Open Market: During the week from October 30 to November 3, on the mortgage channel, the State Bank offered a 7-day term with a volume of 5,000 billion VND at an interest rate of 4.0%. There were no winning bids, and there was no circulating volume on the mortgage channel.
The State Bank continued to offer SBV bills with a 28-day term, with a bidding interest rate. There were 56,750 billion VND of winning treasury bills, with an interest rate of 1.50% (+0.05 ppt compared to the previous weekend). There were 46,899.8 billion VND of mature bills. Consequently, the State Bank withdrew a net 9,850.2 billion VND from the market, bringing the volume of bills circulating in the market to 203,199.2 billion VND.
Bond Market: On November 1, the State Treasury offered 5,000 billion VND in government bonds, with the winning volume being 3,850 billion VND, equivalent to 77%. Notably, the 5Y term mobilized 350 billion VND out of 1,500 billion VND in bids; the 10Y term mobilized the entire 2,000 billion VND bid, and the 15Y term mobilized the entire 1,500 billion VND bid. The winning interest rates for these terms were 5Y 1.64% (-0.01 points), 10Y 2.45% (+0.05 points), and 15Y 2.68% (+0.05 points).
On November 3, the Social Policy Bank offered 1,500 billion VND of Government Bonds, with the winning volume at 500 billion VND, equivalent to 33%. The 5Y term mobilized the entire 500 billion bid with an unchanged interest rate of 2.5%. Tenors 10Y and 15Y called for bidding of 500 billion VND each, but there were no winning bids for either term.
This week, on November 8, the State Treasury is set to offer 3,500 billion VND in government bonds, including 500 billion each for the 5Y and 20Y terms, 1,000 billion for the 10Y term, and 1,500 billion for the 15Y term.
Outright and Repos transaction values on the secondary market averaged 5,663 billion VND per session last week, slightly up from the 4,949 billion VND per session in the previous week. Government bond yields fluctuated slightly across different terms. By the close of the November 3 session, the government bond yields were as follows: 1Y 1.77% (+0.005 ppt); 2Y 1.78% (-0.005 points); 3Y 1.79% (+0.01 ppt); 5Y 1.75% (-0.002 ppt); 7Y 2.56% (-0.10 ppt); 10Y 2.79% (-0.1 points); 15Y 3.05% (-0.07 ppt); 30Y 3.28% (-0.03 ppt).
Stock Market: During the week from October 30 to November 3, the stock market experienced sharp declines in the first 2 sessions but displayed positive recovery in the last 3 sessions. By the close of the November 3 session, the VN-Index stood at 1,076.78 points, up 16.16 points (+1.52%) compared to the previous weekend. The HNX-Index lost 0.29 points (-0.13%) to reach 217.75 points, while the UPCom-Index added 1.06 points (+1.28%) to reach 84.16 points.
Market liquidity was relatively low, with an average transaction value of over 15,200 billion VND per session, slightly down from about 15,800 billion VND per session in the previous week. Foreign investors continued to net sell more than 470 billion VND on all three exchanges.
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Source: Vietnam Insider