SBV withdraws liquidity amid escalating USDVND pressure

This week, the SBV returned to liquidity withdrawal as post-Tet effects faded, while USDVND surged. Specifically, with easing liquidity pressures, the interbank rate curve shifted downward this week. On the global front, the greenback strengthened early in the week as Trump’s tariff measures fueled fears of escalating trade tensions but weakened toward the weekend following the delay of reciprocal tariffs and easing Russia-Ukraine tensions. Domestically, USDVND surged on tariff concerns, further amplified by the SBV’s adjustment to its quoting mechanism for the USD, pushing the exchange rate to an all-time high before retreating toward the weekend as pressures subsided.