Currency: Vietnam central bank lets dong weaken, Friday

The SBV central exchange rate rose slightly from 25,186 on 25 September to 25,194 on 26 September, a change of 8 VND.

The Google Finance mid-market rate moved from 26,405 to 26,410.

The black market rate remained unchanged at 26,490/26,590, leaving the black market mid-point at 26,540.

The spread between the mid-market black rate and the SBV reference narrowed marginally from 1,354 to 1,346, or from 5.38 percent to 5.34 percent.

Liquidity operations

The State Bank of Vietnam’s repo activity shifted sharply. 7-day repos dropped from US$400.1 million to US$189.3 million.

14-day repos also fell, from US$454.5 million to US$151.5 million.

In contrast, 28-day repos increased from US$189.4 million to US$227.2 million, and 91-day repos surged from US$9.4 million to US$75.7 million.

T-bill issuance remained at zero.

Interbank interest rates

Short-term borrowing costs continued to edge higher.

The overnight rate rose from 4.26 to 4.57 percent.

The 1-week rate moved from 5.25 to 5.63 percent and the 2-week rate from 5.36 to 5.79 percent.

Medium-term tenors saw smaller adjustments: the 1-month rate inched up from 5.38 to 5.42 percent, the 3-month rate from 5.37 to 5.50 percent, while the 6-month rate dipped slightly from 5.69 to 5.60 percent.

See also: How Low Can the Vietnamese Dong Go? Why It’s Sliding & What Might Happen Next

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