USDVND cools as SBV reissues bills

The USDVND eased after five consecutive weeks of gains, following the SBV’s reissuance of central bank bills for the first time in over three months to address interest rate differentials. Liquidity remained abundant, driven by a state budget surplus and refinancing by state-owned banks, leading to a sharp drop in interbank rates. This kept the VND-USD interest rate spread negative, exerting upward pressure on the exchange rate. The SBV’s bill issuance helps absorb excess liquidity, push interbank rates higher, and ease pressure on the USDVND. Looking ahead, market attention will shift to the outcome of U.S. tariff negotiations with key trading partners, including Vietnam, which could play a pivotal role in shaping the country’s economic and trade outlook.