Exchange rate pressure escalates as tariffs hit

This week, SBV continued to inject liquidity into the banking system with greater intensity, while pressure on USDVND escalated. Interbank rates increased at short-term tenors, especially the overnight rate, while longer-term rates remained stable. On the global front, the greenback slumped after Trump officially announced the reciprocal tariff plan, triggering concerns over rising global trade tensions and reigniting fears about the U.S. economic outlook. Domestically, the VND depreciated sharply as Vietnam was named among the top countries subject to heavy tariffs imposed by the U.S. Given the current context, Vietnam faces growing challenges in achieving its economic growth targets for the year, and upcoming negotiations between the Vietnamese government and the White House will be a key factor in shaping the country’s outlook in the near term.