SBV strengthens liquidity injection to support the banking system

This week, the SBV ramped up repo contract issuances amid the intense liquidity in the week-early. Interbank interest rates spiked to 5.5% before easing to 4.15% on Friday, marking a 55bps increase from the previous week. Regarding the FX market, USDVND saw a slight decline despite a stronger DXY following the Republican Party’s sweeping U.S. election victory. We believe a sizable trade surplus and potential year-end remittances are key factors helping to stabilize the exchange rate.