SBV returns to liquidity injection ahead of the holiday

This week, the SBV returned to net liquidity injection after two consecutive weeks of strong withdrawal. On the money market, the interbank curve steepened further as short term rates, particularly overnight, declined sharply, in line with the SBV’s liquidity injection via OMO. On the FX front, USDVND edged slightly higher even as the greenback rebounded modestly, while easing tensions in the Middle East helped limit upward pressure on the U.S. dollar.