SBV maintains liquidity injection as demand persists

This week, the SBV maintained its net liquidity injection, albeit at a modest level, mainly to offset the withdrawal pressure from maturing repo contracts. Specifically, the interbank yield curve diverged, with short-term rates declining while longer-term tenors edged higher. Given limited exchange rate pressures and rising year-end credit disbursement needs, we expect the SBV to maintain its net injection stance on the OMO market in the coming weeks to ease funding costs and support overall banking system stability.