SBV begins to enact its stimulus measures

This week, the SBV shifted to injecting liquidity into the banking system, primarily through repos while continuing to halt T-bill issuance, as USDVND remained stable. Interbank rates diverged, with short-term rates ticking up while longer-term rates declined. On the global front, the greenback continued to weaken due to escalating trade war fears and growing signs of a U.S. economic recession. On the domestic front, USDVND edged up despite the dollar’s depreciation, albeit with minimal change, as the VST continued bidding for USD to fulfill its obligations. As the VST is expected to continue its USD purchases in the coming weeks, this could place upward pressure on USDVND. However, the impact is likely to remain moderate as the greenback is anticipated to weaken further due to the continued uncertainty surrounding U.S. tariff policies.