SBV withdraws significantly

This week, the SBV resumed to withdraw liquidity at a significant level as interbank rates eased, further reducing outstanding repo contracts this week. The interbank curve steepened as short-term rates fell sharply, accompanied by a decline in trading volume, reflecting ample liquidity within the banking system. On the global front, the greenback continued to strengthen amid ongoing U.S. negotiations with other countries. Domestically, USDVND cooled as the market awaited the outcomes of negotiations, reflecting cautious sentiment ahead of discussions that could shape Vietnam’s trade outlook in the coming period.