SBV returns to net injection as interbank rates surge

This week, as liquidity in the banking system tightened, the SBV shifted back to a net injection position on the OMO market. Meanwhile, the USDVND held broadly sideways amid expectations for upcoming Fed developments. The interbank curve flattened as short term rates rose sharply, while trading volume continued to climb, reflecting stronger funding demand across the system. On the FX side, the exchange rate remained virtually unchanged despite the greenback’s retreat, as heightened conviction for a December Fed cut weighed on the USD.