During the week of 20–27 April, the State Bank of Vietnam (SBV) returned to a net liquidity injection stance in the open market after two consecutive weeks of net draining.
Net liquidity injection dynamics via OMO over more than a year. Unit: trillion dong
Specifically, the authorities injected a net total of 109.135 trillion dong into the system at a fixed rate of 4.5% per year for tenors of 14–56 days. Meanwhile, maturities amounted to only 19.502 trillion dong, resulting in a net injection of 89.633 trillion dong during this period. The outstanding amount on the term-repo channel rose to 266.681 trillion dong.
This move occurred as interbank rates rose slightly in the early part of the week before easing toward the end of the week. The overnight rate rose 184 basis points from the previous week to 5.82% per year on 21 April, then eased to 4.38% per year by the end of the week (23 April). The 1-week and 2-week tenors rose to 6.52% and 7.01% per year on 21 April, before retreating to 4.72% and 6.43% per year by the end.
Similarly, 1-month and 3-month tenors rose by 35–49 basis points to 7.61% and 8.06% per year on 21 April, then retreating to 7.33% and 7.90% per year by the end of the week.
On the international front, the
USD Index (DXY) reached 98.36 points at the end of 24 April, up 0.46 points from the prior week, ending a three-week decline.
This development reflects a cautious mood in US-Iran talks, with risks of disruption in the Hormuz Strait continuing to keep oil prices high. Inflation pressures have risen, causing markets to adjust their expectations for the rate path. The Federal Reserve is expected to hold rates at the upcoming meeting and is unlikely to implement meaningful changes for the rest of the year.
Domestically, the USD exchange rate at commercial banks moved in line with global trends but cooled below the cap. By the end of the week of 24 April, Vietcombank quoted the rate at 26.108–26.368 dong per USD (buying – selling), up 11 dong from the previous week.
Source: VietstockFinance
