SBV resumes liquidity injection

This week, the SBV returned to liquidity injection, albeit at a moderate level, into the banking system after three consecutive weeks of net liquidity withdrawal. The interbank curve flattened as short-term rates increased while longer-tenor rates remained mostly unchanged, reflecting the lingering impact of prior liquidity withdrawals by the SBV. On the global front, the greenback continued to strengthen as hopes of easing trade tensions rose from ongoing negotiations between the U.S. and other countries, particularly China. Domestically, USDVND rose slightly, reflecting the market’s cautious sentiment ahead of upcoming negotiations, which could potentially shape Vietnam’s trade outlook in the coming period.