Vietnam’s central bank continued to inject significant liquidity into the market on July 13, while interbank interest rates inched higher and the dong’s black market premium narrowed slightly, according to the latest data from the State Bank of Vietnam.
Liquidity injections rise sharply
- Repos for 7-day terms surged from US$657 million on July 12 to over US$1.18 billion on July 13.
- Repos for 91 days also rose to nearly US$188 million.
- T-bill issuance dropped to US$38 million on July 13 from US$191 million on July 12, indicating a shift towards longer-term liquidity support.
Dong remains under pressure
- The SBV central exchange rate increased slightly to 25,148 VND/USD, up 22 dong from the previous day.
- Google Finance mid-market rates also edged up, with a small increase of 12 dong on July 13.
- Black market rates stayed stable at around 26,350 VND/USD, with the premium to official rates narrowing to 0.95 percent from 1.03 percent.
Interbank rates trend higher
- Overnight interbank rates rose to 4.68 percent from 4.65 percent.
- Shorter tenors such as one week and two weeks also saw slight increases, reflecting tightening liquidity conditions.
Longer tenors (three and six months) remained steady at 4.78 and 5.27 percent respectively.
See also: Right Now, a Weak Dong Could be Good for Vietnam. Here’s Why.