If there was any doubt as to why the State Bank of Vietnam has been issuing treasury bills, this article in state media outlet Vietnam News should clear it up.
“The SBV has also been making its own moves to address the rising exchange rate including the recent issuance of treasury bills, which has net absorbed nearly VNĐ 30 trillion from the banking system,” the publication reads.
Why it matters: In June of this year Vietnam was removed from a US Treasury watch list for currency manipulation. These latest moves have the potential to see that decision reversed which could lead to countervailing duties on Vietnam’s exports.