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Net OMO Pumping Developments over the Past Week (Apr 21-28, 2025). Unit: VND billion
Source: VietstockFinance
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Specifically, on the term purchase channel, capital demand from commercial banks remained stable, with VND 45,760 billion issued at an interest rate of 4%. Meanwhile, maturities amounted to VND 80,802 billion, leading to the SBV’s net withdrawal of VND 35,042 billion for the week. As a result, the outstanding volume in this channel decreased to VND 90,753 billion.
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Developments in Overnight Interbank Interest Rates since the Beginning of 2025. Unit: %/year
Source: VietstockFinance
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Notably, the overnight interbank interest rate witnessed a sharp decline, falling to 2.47% on Apr 26 – the lowest level since Apr 2024, equivalent to a decrease of 163 basis points compared to Apr 18. This development reflects the abundant liquidity in the system, while exchange rate pressure showed signs of cooling down. The overnight trading volume in the interbank market also decreased significantly compared to the previous week.
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DXY Developments over the Past 5 Years
Source: tradingview
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In the international market, the DXY index edged up by 0.36 points to 99.59 points last week – marking the first weekly gain after four consecutive weeks of declines, as US-China trade tensions showed signs of easing. However, the index remained at its lowest level in over three years.
Domestically, the USD/VND exchange rate at Vietcombank closed at 25,805 – 26,195 VND/USD (buying – selling) on Apr 25, up VND 75 in both directions compared to the previous week.
– 15:01 29/04/2025
“How Does the Rise in Domestic USD Impact Import-Export Businesses?”
The State Bank’s leadership assures that the banking sector is committed to meeting the foreign currency needs of businesses. We aim to facilitate legitimate demands and create an enabling environment for businesses to thrive.
The Exchange Rate Conundrum
The twin shocks of tariffs and excess liquidity are sending USD/VND soaring in the short term. However, a stable macroeconomic context equips Vietnam with the tools to regulate and curb systemic risks.
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Why is the US Dollar Weakening Globally Yet Appreciating Against the VND?
According to MBS, the increase in foreign currency purchases by the State Treasury, coupled with heightened foreign currency demands from businesses amid global trade uncertainties and a significant negative shift in VND-USD interest rate differentials, contributed to the appreciation of the USD/VND exchange rate in April, despite the greenback’s weakness in the international market.
“May 7: Central Bank’s Continued Drop in USD Rates, Gold Prices Soar to Record Highs”
The USD exchange rates at banks witnessed a mixed trend as the SBV lowered the mid-rate for the third consecutive session. Domestic gold prices remained anchored at record highs.
