Vietnam’s central bank allowed the dong to strengthen modestly this week, with the State Bank of Vietnam (SBV) setting the central exchange rate at VND 25,162 per US dollar on 3 October, down 15 dong from the previous day’s fix of VND 25,177.
This marks a sharper daily adjustment compared with the 10-dong cut recorded on 2 October.
Of note, Google Finance’s mid-market rate moved in tandem, slipping to VND 26,381 on 3 October from VND 26,396 the day before.
In the informal market, however, the dong held steady, with buy/sell quotes unchanged at VND 26,515 and VND 26,615 respectively, leaving the mid-market rate flat at VND 26,565.
The spread between the black market and SBV’s central rate widened to 5.58 percent on 3 October from 5.51 percent on 2 October, signalling persistent demand pressure outside official channels.
Liquidity operations shifted as SBV withdrew short-term support.
On 2 October, repos across 7-, 14-, 28-, and 91-day tenors totalled nearly US$252 million.
On 3 October, however, just one lot of repos was issued worth US$4.69 million at the 91-day tenor.
No new T-bill placements were recorded.
Interbank rates showed mixed movement.
Overnight borrowing rose slightly from 4.38 percent to 4.39 percent.
One- and two-week rates fell sharply, with the one-week rate dropping from 5.39 percent to 4.48 percent and the two-week from 5.37 percent to 4.74 percent.
One-month rates eased to 4.51 percent, while three-month funding costs fell from 5.50 percent to 5.05 percent. Six-month rates were stable at 5.70 percent.
See also: How Low Can the Vietnamese Dong Go? Why It’s Sliding & What Might Happen Next