Economic news review July 18

The central exchange rate decreased by 5 VND, the VN-Index increased by 5.78 points, and gasoline prices were simultaneously adjusted down... are some notable economic news on July 18.

Economic news review

Domestic news

In the foreign exchange market session on July 18, the State Bank listed the central exchange rate at 24,251 VND/USD, down 5 VND compared to the previous session.

The buying and selling prices of USD were kept unchanged by the State Bank of Vietnam at 23,400 VND/USD and 25,450 VND/USD, respectively.

On the interbank market, the dollar-dong exchange rate closed at 25,320 VND/USD, down 6 VND compared to the session on July 17.

The dollar-dong exchange rate on the free market increased by 25 VND for buying and 15 VND for selling, trading at 25,535 VND/USD and 25,615 VND/USD.

Interbank money market: On July 18, the average interbank VND interest rate decreased by 0.01 - 0.08 percentage points for all terms of 1 month or less compared to the previous session; specifically: overnight 4.52%; 1 week 4.65%; 2 weeks 4.78% and 1 month 4.97%.

The average interbank USD interest rate remained unchanged across all terms, trading at: overnight 5.30%; 1 week 5.34%; 2 weeks 5.39%, 1 month 5.43%.

Government bond yields in the secondary market remained unchanged at 3-year and 15-year terms while slightly increasing at 10-year terms and decreasing at other terms; closing at: 3-year 1.91%; 5-year 1.97%; 7-year 2.29%; 10-year 2.79%; 15-year 2.95%.

In the open market operations, on the mortgage channel, the State Bank of Vietnam bid 3,000 billion VND, with a term of 07 days, the interest rate remained at 4.50%. There were 2,914.68 billion VND won in the bid, there were 14,999.99 billion VND matured in yesterday's session. The State Bank of Vietnam bid 14-day SBV bills, bidding for interest rates. There were 17,100 billion VND won in the bid with an interest rate of 4.50%, there were 17,100 billion VND matured bills.

Thus, the State Bank of Vietnam withdrew a net VND12,085.31 billion from the market through open market operations. The volume of treasury bills circulating in the market was VND81,850 billion, the volume circulating in the mortgage channel was VND28,936.12 billion.

The stock market experienced a difficult trading session, falling sharply in the morning, but the market suddenly turned around to close in the green. At the end of the trading session, VN-Index increased by 5.78 points (+0.46%) to 1,274.44 points; HNX-Index added 1.59 points (+0.66%) to 242.49 points; UPCoM-Index inched up 0.34 points (+0.35%) to 97.61 points. Market liquidity was low with a trading value of over VND20,900 billion. Foreign investors net bought more than VND962 billion on all three exchanges.

The Ministry of Industry and Trade and the Ministry of Finance have simultaneously adjusted the price of gasoline and oil since July 18. Specifically, the price of RON 95 gasoline decreased by VND120/liter compared to the previous adjustment period, at VND23,170/liter; E5 RON 92 gasoline decreased by VND110/liter, at VND22,170/liter; diesel oil price decreased by VND330/liter, at VND20,500/liter; kerosene has a new price of VND20,660/liter (down VND370/liter); fuel oil decreased by VND170/kg, at VND17,610/kg.

International News

The European Central Bank (ECB) left its policy interest rate unchanged at its July meeting. At its meeting last night Vietnam time, the ECB said that wage growth in the Eurozone remained strong, driven by positive corporate profits. Although consumer prices in the Eurozone are still slowing, some prices of goods and services remain high.

The ECB Governing Council is determined to ensure that inflation returns to its 2.0% target over the medium term in a timely manner. Accordingly, the ECB will keep its policy interest rates at sufficiently restrictive levels for as long as necessary to achieve the objective.

At this meeting, the ECB decided to leave its policy interest rate unchanged, keeping the refinancing rate, marginal lending rate and deposit rate at 4.25%; 4.75% and 3.75% respectively. The ECB will base its further decisions on policy interest rates on economic and inflation data in the coming period. The ECB did not commit to a specific roadmap for monetary policy management in the future.

The number of people claiming unemployment benefits in the UK rose by 32,300 in June, the Office for National Statistics (ONS) said, after rising by 50,400 in the previous month, and above the forecast of 23,400. However, the UK unemployment rate remained unchanged at 4.4% last month, in line with expectations.

In the most recent 3 months 04-05-06/2024, the average income of British people increased by about 5.7% compared to the same 3 months, slowing down compared to the 5.9% of the 3 months 03-04-05, matching the forecast of experts.

The Australian Bureau of Statistics (ABS) reported that the country created 50.2 thousand new jobs in June, up from 39.7 thousand in May and also beating the forecast of 19.9 thousand. However, the unemployment rate in Australia last month still increased slightly to 4.1% from 4.0% in May, matching the forecast. Looking at the medium term, the unemployment rate in this country is still on an upward trend over time, starting from a low of 3.4% recorded in November 2023.

Source: https://thoibaonganhang.vn/diem-lai-thong-tin-kinh-te-ngay-187-153705-153705.html