SBV modestly withdraws liquidity

This week, the SBV continued to withdraw liquidity, albeit at a moderate level, by offsetting matured repo contracts to maintain favorable interbank conditions. The interbank curve flattened, with a slight increase in the overnight rate while other tenors declined, accompanied by lower trading volume—signaling abundant liquidity in the banking system. On the global front, the greenback weakened due to concerns over Trump’s tariff policies and renewed trade war tensions. Domestically, USDVND rebounded as the Vietnam–U.S. negotiation concluded without concrete outcomes, and it is expected to remain under pressure in the near term, pending further clarity from the upcoming negotiation round in June.