SBV resumes liquidity injection ahead of Trump’s inauguration

This week, the SBV resumed liquidity injection after significant withdrawals in the previous week as exchange rate pressures eased. The interbank yield curve declined, with sharper drops in shorter tenors. Domestically, USDVND fell for the fourth consecutive week despite a stronger dollar and foreign net selling, as supported by prior SBV interventions. On the global front, the greenback recovered, driven by Trump’s upcoming inauguration and U.S. economic resilience, which fueled hopes for a more dovish Fed tone this year. Ahead of the Lunar New Year, USD volatility is anticipated as Trump’s return approaches. However, with strong domestic fundamentals, USDVND is expected to remain under control in the coming weeks.