The State Bank of Vietnam (SBV) raised its central exchange rate by 22 dong to VND 25,228 per US$1, Wednesday.
While this move was modest, the black market mid-rate rose to VND 26,445, up VND 25 from the previous day creating a 0.94 percent spread between the black market and interbank reference rates.
Liquidity injections slow sharply
In a notable shift, the SBV did not offer any 7-day repo operations today, suggesting a pause in its short-term support for the banking system. Meanwhile, 14-day and 28-day repo volumes fell sharply:
- 14-day repos dropped to just US$9.1 million, down from US$252.9 million on July 29
- 28-day repos were scaled back to US$41.3 million
Interbank rates retreat from highs
After a spike in overnight lending rates to 6.5 percent on July 29, interbank borrowing costs fell across the curve:
- Overnight rate dropped to 4.33 percent
- 1-week and 2-week rates also eased to 4.76 percent and 4.99 percent, respectively
- However, the 1-month rate rose to 5.78 percent, its highest level this month, showing continued caution around medium-term funding.
See also: How Low Can the Vietnamese Dong Go? Why it’s Sliding & What Might Happen Next