SBV continues to withdraw liquidity amid ongoing exchange rate pressures

This week, the SBV continued to withdraw liquidity as the banking system remained abundant following the fading post-Tet effect, while USDVND maintained its upward trajectory. Specifically, with easing liquidity pressures, short-term tenors on the interbank rate curve continued to adjust downward this week. On the global front, the greenback was influenced by mixed factors, initially strengthening due to Trump’s tariff policies but eventually weakening toward the weekend as concerns over a U.S. economic slowdown overshadowed market sentiment. Domestically, USDVND continued to surge, primarily driven by rising demand from raw material imports for production and USD purchases by the VST. Additionally, the government’s budget planning for this year could raise inflation expectations, further amplifying the depreciation of the domestic currency.