HANOI: The coupon for State Bank of Việt Nam’s 14-day treasury bills hit a one-year record high of 3 per cent on November 11. The October Vietnam Chartbook report, released by the Saigon Securities Company (SSI), also showed the overnight inter-bank rate rising to 1.083 per cent, the highest level for the past 65 days, on the same day.
According to the report, after hitting VNĐ86.7 trillion (US$3.853 billion) on October 28, 2016, the outstanding amount of SBV’s treasury bills gradually declined to VNĐ55.7 trillion on November 11. This indicated that the central bank deposited VNĐ31 trillion into the financial system in 11 days. SSI said that the rise in the rates showed that the liquidity in the banking system is not as abundant as previously.
However, SSI said, demands for cash often rise at the end of the year, adding that the same move was seen at the end of last year. Within 24 days, from early November 2015, the VNĐ42 trillion outstanding amount of the central bank’s treasury bills reduced to zero. The VNĐ55.7 trillion outstanding amount of SBV’s treasury bills this year therefore could diminish soon, SSI forecast.
