Currency: Vietnam dong steady as SBV rate slips, black market premium widens slightly, Wednesday

The State Bank of Vietnam (SBV) set the central exchange rate at VND 25,133 per US$1 on 8 October, a decrease of 8 dong from the previous day, while Google Finance’s mid-market rate was stable at VND 26,361.

The black market mid-rate held firm at around VND 26,565 per US$1, though the gap over the SBV’s official rate edged up to VND 1,432, keeping the spread between official and unofficial rates at 5.70 percent.

Open market operations

Short-term liquidity operations declined across most tenors on 8 October.

The State Bank of Vietnam’s 7-day repos fell to US$75.87 million from US$113.80 million, and 14-day repos dropped to the same level from US$189.67 million.

Activity in 28-day repos was steady at around US$265.54 million, while 91-day repos were unchanged near US$75.87 million.

No new 7-day Treasury bills were issued.

Interbank interest rates

Vietnam’s interbank interest rates were mostly steady on 8 October.

The overnight rate eased to 4.00 percent from 4.27 percent, while the one-week and two-week tenors rose slightly to 4.56 and 4.65 percent.

Longer maturities were stable, with the one-month rate at 4.99 percent, three-month at 5.26 percent, and six-month unchanged at 6.20 percent.

See also: Right Now, a Weak Dong Could be Good for Vietnam. Here’s Why.

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