USDVND surges ahead of tariff outcomes

This week, the SBV modestly withdrew liquidity from the banking system by rolling just enough repos to offset maturing pressures, while USDVND surged. Interbank rates cooled with sharp declines in shorter tenors, and trading volume continued to rise, indicating that banks’ liquidity demand remains high. On the FX side, USDVND climbed to record highs as tariff results suggested Vietnam’s competitive edge in trade could be affected. As the tariff saga appears to be drawing to a close, we expect its impact to stabilize, and that future growth momentum for Vietnam’s economy will be driven by underlying fundamentals.