SBV returns to net injections as credit growth hits a record high

This week, the SBV shifted back to net liquidity injection via OMO, as credit growth surpassed official targets while USDVND continued to move broadly sideways. On the interbank market, the overnight rate continued to decline, whereas longer tenors gained further traction, reflecting banks’ preference for more stable funding sources. On the FX front, USDVND cooled amid expectations of more accommodative Fed rate policies, supported by year end remittance inflows. With the SBV maintaining its supportive liquidity stance, we expect credit growth to continue accelerating toward the end of 2025, potentially pushing full year credit expansion beyond the current 17.65%.