The dong weakened slightly on Tuesday as the State Bank of Vietnam (SBV) set the central exchange rate at VND 25,273, down 18 dong from the previous session, while interbank rates climbed across most tenors.
Exchange rates
The SBV’s reference rate slipped from VND 25,291 on 25 August to VND 25,273 on 26 August. Google Finance mid-market moved up from VND 26,305 to VND 26,365.
The black-market mid-rate stayed fixed at VND 26,545.
The premium of the black market over Google mid narrowed from 240 dong (0.91 percent) to 180 dong (0.68 percent).
Open market operations
Short-term liquidity support wound down.
Seven- and 14-day repos fell to zero from US$40.98 million and US$954.16 million the day before.
The 28-day tenor was trimmed from US$244.75 million to US$143.37 million. No 91-day repos or 7-day T-bills were issued.
Interbank interest rates
Funding costs rose in most maturities.
Overnight increased from 4.76 to 4.89 percent, one week from 4.94 to 5.46 percent, and two weeks from 5.63 to 5.68 percent.
One-month eased slightly to 5.14 percent from 5.19 percent, while three months climbed from 5.66 to 5.93 percent and six months from 5.86 to 5.97 percent.
See also: Right Now, a Weak Dong Could be Good for Vietnam. Here’s Why.