The State Bank of Vietnam, on Wednesday, issued treasury bills worth VND 550 billion or US$21.6 million and reverse repos worth VND 8,000 billion or US$314.8 million which has caused a flurry of media coverage. This has mostly been focused on the State Bank’s increasing net withdrawal of dong from the market which would suggest that there is significant pressure on the local currency.
Of note, CafeF has reported, citing ‘sources’, that the SBV has advised some local banks that it intends to resume selling foreign currency. This has also been reported by Vietnam Securities Economic Magazine which has noted the intervention price has been set at 25,450–Vietcombank, among Vietnam’s biggest foreign currency traders, was selling US dollars yesterday for 25,475.
See also: Vietnamese Dong Tracker