SBV boosts liquidity injection as system demand climbs

This week, the SBV continued its strong net liquidity injection into the banking system as funding demand rose, while USDVND cooled down. Interbank rates increased across all tenors, with sharp rises in short-term rates and higher trading volume, signaling heightened liquidity demand. On the FX front, USDVND eased slightly as VNIBOR remained elevated and the greenback weakened amid trade negotiation developments. In the week ahead, market volatility may intensify as the U.S. tariff deadline approaches and ahead of the July FOMC meeting, where the Fed is expected to maintain a cautious stance, though uncertainty still remains.