SBV supports liquidity before Tet holiday

This week, the SBV injected a significant amount of liquidity to ensure money supply for the Tet holiday as exchange rate pressures eased further. The interbank yield curve flattened, with longer-term rates remaining nearly unchanged while shorter-term rates rose, reflecting increased cash demand for holiday expenditures. On the global front, the greenback weakened as Trump postponed his universal tariff plan on his inauguration day. Domestically, USDVND fell sharply for the fifth consecutive week due to a weaker dollar, strong remittance inflows, and the foreign bloc reversing to net buying on the stock market this week. During the Lunar New Year, Trump may take action related to tariffs on other countries, as previously stated. This could drive USD volatility and potentially influence USDVND performance after the Tet holiday.