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The popular interest rate is at around 8 per cent per annum. It pumped some VND1.6 trillion for 7-day term at an interest rate of 8 per cent per annum on Friday alone, the fourth money injection session in a row this week, according to Reuters’ data.
The highest rate was 8.8 per cent per annum for VND5 trillion injected via OMO on August 21, 2012 for urgent liquidity aid in response to Kien’s arrest.
Strong SBV intervention in the monetary market via OMO injection is an effort of the central bank to support liquidity to help local banks in need, especially the Asia Commercial Joint Stock Bank (ACB), which faced massive withdrawals due to the arrest of Kien, who is also a shareholder and a co-founder of the bank.
But as of Thursday, Nguyen Thanh Toai, deputy general director of ACB, said the bank did not have to borrow money on OMO with sufficient liquidity. Earlier, ACB borrowed a total of VND11 trillion on OMO on Tuesday and Wednesday (August 21 and 22).
In another development, the interest rate on the interbank market today continues to decline, with the overnight period of 6.81 percent, 0.33 percent lower than yesterday and less than 1 percent compared to the peak set on August 22.
The rate for 1-week and 1-month term went down to 7.5 per cent and 8.73 per cent, down 0.21 percent and 0.1 per cent day on day.
