SBV returns to liquidity injections

After two weeks of net withdrawals, the SBV shifted to injecting liquidity in the last week, marking the largest injection in four months amidst a slight uptick in the exchange rate. Interbank rate curves continued to diverge, with short-tenor rates rising sharply, while longer maturities increased more modestly. In the FX market, the USD/VND maintained its modest climb, while the DXY extended its decline to the lowest level in 2024. Although exchange rate fluctuations may persist, current favorable levels and the SBV’s stable exchange rate regime should keep them manageable, balancing economic stimulus with inflation control.