Vietnam's SBV takes further action to stabilise foreign exchange rates

25 Apr '24

1 min read

Vietnam's SBV takes further action to stabilise foreign exchange rates

Pic: Adobe Stock

Insights

Amid surging USD-VND exchange rates, Vietnam's central bank recently issued treasury (T) bills, employing these as an open market operation (OMO), and stipulated liquidity and interest rates in the inter-bank market.
The bank lent $1.4 billion for a 14-day term to nine members via OMO.
It also issued VND2.15 trillion worth of 28-day T-bills at 3.73 per cent.

Amid surging US dollar (USD)-Vietnamese dong (VND) exchange rates, the State Bank of Vietnam (SBV) recently issued treasury bills (T-bills), employing these as an open market operation (OMO), and stipulated liquidity and interest rates in the inter-bank market.

SBV lent nearly VND36 trillion ($1.4 billion) for a 14-day term to nine members via OMO. The bid-winning interest rate increased to 4.25 per cent per year from 4 per cent per year as recorded recently.

The seven-day loan, issued on April 16, matured on April 23 with total value of close to VND12 trillion.

The bank also continued to issue VND2.15 trillion worth of 28-day T-bills at an interest rate of 3.73 per cent. Two members won the bidding.

Besides, the T-bills issued on March 26 also became mature on April 23, enabling the central bank to inject VND3.7 trillion back to the market, according to a domestic media outlet.

The central bank set the daily reference exchange rate at VND24,275 per USD on April 23, up by VND3 from the previous day.

ALCHEMPro News Desk (DS)

More Textiles News - Vietnam...