SBV continues net withdrawal as demand cools

This week, the SBV extended its net liquidity withdrawal for a second consecutive week at a strong pace, as funding demand eased. Interbank rates declined across tenors alongside lower trading volumes, signalling a continued cooling in liquidity demand, while USDVND entered a consolidation phase. On the FX front, USDVND edged slightly higher despite a softer greenback, as easing tensions in the Middle East reduced upward pressure on the U.S. dollar.