SBV strengthened liquidity withdrawal as USDVND regains

This week, the SBV intensified liquidity withdrawal by issuing 14-day T-bills as interbank rates declined notably amid strong exchange rate pressures. Specifically, the overnight rate rebounded to nearly 4% after reaching 3.27% last week, reflecting the SBV’s efforts to manage liquidity and stabilize the interest rate differential. In the foreign exchange market, USDVND increased as the USD strengthened due to a robust U.S. labor market. In the coming weeks, tighter SBV liquidity measures to narrows interest rate gap, together with a trade surplus, year-end remittance inflows, the recent slowdown in the USD’s momentum, and the high probability of another rate cut by Fed are expected to ease and stabilize the USDVND exchange rate.