SBV resumes net withdrawal as USDVND softens

This week, the SBV reverted to a mild net liquidity withdrawal after a strong injection in the previous week, as liquidity in the banking system cooled. Interbank rates declined sharply at the short end while longer tenors were unchanged, showing that funding conditions remain favorable. On the FX market, USDVND fell slightly as the DXY weakened following softer U.S. labor data and concerns over the government shutdown. The SBV’s announcement of cancelable 6-month forward sales at 26,550 helped stabilize the Dong, which has depreciated by more than 3% YTD, though continued foreign net selling still put some upward pressure on the rate.