SBV re-offers T-bills amid escalating USDVND

This week, SBV resumed T-bill offerings for the first time in six weeks to withdraw liquidity from the banking system, aiming to curb the rapidly rising exchange rate in recent weeks. The interbank rate curves shifted downward across all tenors, especially in short-term rates. In the FX market, the USDVND surged to an 11-week high as USD became stronger. A robust U.S. labor market and heightened global economic instability due to conflicts in the Middle East could be sources for the DXY development. Additionally, proposed policies by former President Donald Trump, who is gaining momentum in his re-election campaign, further fueled upward pressure on the greenback. Hence, we expect the SBV to take stronger measures in the coming period to stabilize the exchange rate.