Economic news review May 21

The central exchange rate increased by 4 VND, the VN-Index decreased slightly by 0.44 points, or the accumulated foreign capital disbursement of localities up to May 15, 2024 only reached 5.7% of the assigned capital plan... are some notable economic information on May 21.

Economic news review

Domestic news

In the foreign exchange market on May 21, the State Bank listed the central exchange rate at 24,251 VND/USD, an increase of 4 VND compared to the first session of the week.

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 25,463 VND/USD, continuing to increase by 9 VND compared to the session on May 20.

The dollar-dong exchange rate on the free market remained unchanged at buying while increasing by 10 dong at selling, trading at 25,650 VND/USD and 25,740 VND/USD.

On May 21, the average interbank interest rate in VND increased by 0.05 - 0.13 percentage points for all terms of 1 month or less compared to the first session of the week; specifically: overnight 4.16%; 1 week 4.32%; 2 weeks 4.50% and 1 month 4.68%.

The average interbank USD interest rate remained unchanged for most terms, except for a 0.01 percentage point increase for the 2-week term, trading at: overnight 5.27%; 1 week 5.32%; 2 weeks 5.39%, 1 month 5.41%.

Government bond yields in the secondary market remained unchanged for the 3-year term while slightly decreasing for the remaining terms; closing at: 3-year 1.86%; 5-year 2.01%; 7-year 2.27%; 10-year 2.75%; 15-year 2.97%.

In the open market operations on the mortgage channel, the State Bank of Vietnam bid 5,000 billion VND with a term of 7 days, the interest rate remained at 4.25%. There were 2,737.46 billion VND won bids, there were 2,996.21 billion VND matured. The State Bank of Vietnam bid 28-day SBV bills, bidding interest rates. There were 500 billion VND of bills won bids with the interest rate increased to 3.90%, there were 2,150 billion VND of bills matured.

Thus, the State Bank of Vietnam pumped a net VND 1,391.25 billion into the market, the volume of treasury bills circulating in the market decreased to VND 57,090 billion, the volume on the mortgage channel decreased to VND 5,838.49 billion.

On the morning of May 21, the State Bank of Vietnam held an auction for SJC gold bars with a total bid volume of 16,800 taels. The floor price announced by the State Bank of Vietnam was VND88.6 million/tael. There were 9 winning bidders with 7,900 taels of gold. The winning bid price was VND88.42 million/tael, VND0.82 million higher than the reference price.

The stock market fluctuated in different directions yesterday. At the end of the session, VN-Index decreased slightly by 0.44 points (-0.03%) to 1,277.14 points; HNX-Index added 0.72 points (+0.30%) to 243.29 points; UPCoM-Index increased by 0.92 points (+0.98%) to 94.45 points. Market liquidity decreased slightly with a transaction value of over VND 28,100 billion. Foreign investors continued to net sell more than VND 665 billion on all 3 exchanges.

According to information from the Ministry of Finance , in 2024, the cumulative disbursement of foreign capital by localities as of May 15, 2024 only reached 5.7% of the assigned capital plan (including the capital allocation and re-lending plans), 4.9% higher than the same period in 2023; of ministries and branches reached 8.58% of the assigned capital plan, of which 2 ministries and branches had a disbursement rate of over 10%, 8 ministries and branches have not yet disbursed the 2024 capital plan.

International News

Eurozone exports in March reached 245 billion euros, down about 9.2% year-on-year. On the other hand, imports in March stood at 221 billion euros, also down sharply by about 12% year-on-year.

Accordingly, the Eurozone's trade balance recorded a surplus of 24 billion EUR in March, higher than the 19 billion EUR in the same period in 2023. The Eurozone's balance of payments in March also had a surplus of 35.8 billion EUR, higher than the 28.9 billion in February and at the same time higher than the forecast of 30.2 billion.

Next, in Germany, the country's overall PPI rose slightly by 0.2% month-on-month in April, matching the previous month's increase and matching the forecast for a 0.3% increase. Compared to the same period last year, the PPI in Germany fell by a relatively strong 3.3%.

In the minutes of its May meeting, the Reserve Bank of Australia (RBA) said the global economy remained weak outside the United States. Overall inflation remained well above the major central banks’ targets, after a significant decline earlier in the year. Domestically, consumer spending began to weaken more than expected in the first quarter.

In contrast, business investment and government spending both grew strongly, contributing to overall economic growth. The labor market loosened somewhat, but more slowly than expected. Inflation continued to decline in the first quarter, but the rate of decline has slowed and remains high. The RBA forecasts that supply and demand will be more balanced by the end of 2024, the labor market will continue to loosen at a slower pace, and inflation will return to the 2% - 3% target by the end of 2025. The RBA believes that it is appropriate to keep the policy rate unchanged at 4.35% at this meeting to bring inflation back to the target in a reasonable time.

Source: https://thoibaonganhang.vn/diem-lai-thong-tin-kinh-te-ngay-215-151894-151894.html