HÀ NỘI — The overnight interbank rate fell from 6.84 per cent per annum at the start of last week to 1.1 per cent per annum at the end of the week, the lowest level since July 2021 when the rate stood at 0.75 per cent per annum.

The slide was seen after the central bank injected a net total of over VNĐ34 trillion (US$1.3 billion) via open market operations and activated a foreign currency swap facility worth $2 billion.

Rates in longer terms also dropped last week. Specifically, the one-week rate declined from 6.43 per cent to 5.06 per cent per annum; the two-week rate fell from 7.42 per cent to 5.35 per cent per annum; and the one-month rate decreased from 7.42 per cent to 5.35 per cent per annum.

Conversely, the three-month interbank rate rose from 7.01 per cent to 7.2 per cent per annum.

The consistent decline in short-term interbank rates, including the overnight rate hitting a three-year low, showed that while short-term liquidity pressure was present early in the week, it eased by the week's end. However, pressure persisted for longer-term tenors.

Last week, a resurgence in liquidity pressure prompted the central bank to inject a net total of over VNĐ34 trillion via open market operations.

Also last week, to inject additional liquidity into the market, the SBV conducted seven-day USD/VNĐ swap transactions with credit institutions on September 21 with a maximum total volume of $2 billion amidst elevated exchange rates.

The spot buying rate was set at VNĐ24,406 per dollar. Therefore, if the full $2 billion were utilised, the initial supply of Vietnamese đồng would amount to approximately VNĐ48.8 trillion.

On the unofficial market, the dollar traded at around VNĐ25,920 per dollar on September 21. Meanwhile, the DXY index remained above the 100-point mark, following a week of gains for the greenback. — BIZHUB