Interbank rates drop on SBV’s repo rollover

This week, the SBV continued to withdraw liquidity, albeit at moderate level by rolling over a sufficient amount of repos to mitigate the impact, while USDVND cooled down. As a result, the interbank yield curve shifted downward, with shorter tenors experiencing sharper declines. On the global front, the greenback weakened due to uncertainty surrounding Donald Trump’s tariff policies and signs of a slowing U.S. labor market, which fueled recession fears. On the domestic front, USDVND declined for the first time after four consecutive weeks of increases, as pressure from the USD eased and tariff concerns subsided. With ongoing efforts by the SBV and the government to stimulate economic growth, we anticipate interbank rates are more likely to decline. Additionally, the weakening of the greenback could help keep exchange rate pressures under control in the coming period.