The State Bank of Vietnam (SBV) set the central exchange rate at VND 25,113 per US dollar Monday, slightly firmer than the previous VND 25,116 on Friday, according to the latest data from the State Bank of Vietnam.
The dong went on to strengthened marginally to 26,145 per US dollar, according to Google Finance mid-market rates, edging up from 26,175 on 4 July.
Black market premium widens despite official gains
While the official exchange rate improved, the black market mid-rate held steady at VND 26,460, widening the premium to 1.21 percent from 1.13 percent earlier.
This suggests that underlying demand for US dollars in the informal market remains strong, pointing to continued concerns over currency stability and tight offshore dollar liquidity.
Shift in SBV operations: more repos, fewer T-bills
The SBV increased its 7-day repo injections sharply to US$344 million, up from US$191 million previously, providing short-term liquidity to the banking system. A
At the same time, 7-day T-bill issuance was reduced to US$191 million from US$313 million. No new 91-day repos were conducted, compared to US$4.68 million earlier.
Interbank rates rise across most tenors
Interbank interest rates continued to rise, reflecting tighter conditions in the money market.
The overnight rate climbed to 4.08 percent from 3.91 percent, while the 1-week rate increased to 4.25 percent and the 2-week rate edged up to 4.19 percent.
The 1-month rate saw a sharper jump to 4.42 percent from 3.82 percent. Longer tenors, including 3-month and 6-month rates, held steady at 4.86 percent and 5.14 percent respectively.
See also: Right Now, a Weak Dong Could be Good for Vietnam. Here’s Why.