SBV continues to net withdrawal

This week, the SBV continued its net liquidity withdrawal via OMO as liquidity pressure in the banking system eased. On the interbank market, the interbank curve flattened, with short tenor rates edging up while longer tenors declined. Additionally with lower trading volume, this suggests that funding pressure continues to cool, with demand shifting toward shorter tenors ahead of the upcoming Lunar New Year holiday. On the FX front, USDVND remained broadly sideways, as if it waited for further developments from the United States, including upcoming Supreme Court rulings. These outcomes are expected to provide clearer signals on the Fed’s independence and the extent of the Trump administration’s influence over the remainder of his term.