Currency: Vietnam dong under pressure as interbank rates surge and repo activity shifts

The Vietnamese dong continued to depreciate slightly against the US dollar on 29 July, while interbank interest rates jumped across all key tenors. 

The State Bank of Vietnam (SBV) made significant adjustments to its short-term liquidity tools, suggesting shifting conditions in the domestic money market.

Exchange rates

The SBV raised the central exchange rate to VND 25,206 per US$1, up 24 dong from the previous day. 

Market-based rates:

  • Google Finance mid-market rate reached VND 26,221, up 21 dong
  • Black market mid-rate rose to VND 26,420, a 199 dong premium over Google Finance or about 0.76 percent

Repo market

The SBV reduced 7-day repo issuance to zero from US$88 million the day before, while longer-term tenors saw limited increases:

  • 14-day repos rose by US$252.87 billion
  • 28-day repos increased by US$122.79 million
  • 91-day repos were reactivated with US$11.39 million

Interbank interest rates

Interbank rates surged sharply across most tenors:

  • Overnight: up from 5.95 to 6.50 percent
  • 1 week: up from 5.63 to 6.47 percent
  • 2 weeks: up from 5.79 to 6.45 percent
  • 1 month: up from 4.88 to 5.39 percent
  • 3 months: up from 5.13 to 5.57 percent
  • 6 months: flat at 5.44 percent

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

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