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OMO net pumping evolution last week (05/19-26/2025). Unit: VND billion
Source: VietstockFinance
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Specifically, the SBV continued to provide liquidity to commercial banks by issuing new 32,685 billion VND term buying contracts at an interest rate of 4%. Meanwhile, 32,651 billion VND worth of term buying contracts matured, returning an equivalent amount of money to the SBV.
Thus, by the end of May 26, the SBV had net pumped a slight amount of 34 billion VND, and the circulating volume on the term buying channel was 60,604 billion VND.
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Interbank overnight interest rate movement since the beginning of 2025. Unit: %/year
Source: VietstockFinance
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The interbank overnight interest rate remained stable, ranging from 3.78-3.92%/year. Trading volume in the 2 market increased slightly, averaging 517 trillion VND/day (up 24% compared to the previous week).
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3-month interbank interest rate movement since the beginning of 2025. Unit: %/year
Source: VietstockFinance
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Notably, the 3-month interbank interest rate fell to 4.32%/year in the session of May 23, hitting a 6-month low.
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DXY movement from the beginning of 2025 to May 20
Source: marketwatch
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In the international market, USD-Index (DXY) in the week of May 19-23 fell sharply by 1.88 points to 99.1, ending a month-long rising streak.
In the domestic market, the exchange rate listed at Vietcombank ended the session on May 23 at 25,740-26,130 VND/USD (buy-sell), up 20 VND in both directions compared to the end of the previous week.
– 11:22 05/27/2025
The Art of Monetary Tightening: A Case Study on the State Bank of Vietnam’s Open Market Operations
“For the week of May 12-19, 2025, the system-wide liquidity remained stable while the State Bank (SBV) maintained a net withdrawal position in the Open Market Operations (OMO) with a total value of VND 31.317 trillion.”
The Overnight Interbank Interest Rate Surges Again
“The overnight interbank interest rate surged back up during the week of May 5-12, 2025, after hitting a one-year low. This rebound occurred amidst the State Bank’s continued net withdrawal activities in the open market.”
Interbank Overnight Interest Rates Remain at a One-Year Low
“Liquidity in the banking system remained relatively stable during the week of April 28 to May 5. The overnight interbank interest rates persisted at low levels ahead of the extended holiday weekend.”
“Interbank Overnight Rates Plummet as Liquidity Pressure Eases”
Through open market operations (OMO), the State Bank of Vietnam (SBV) injected a net amount of VND 50.55 trillion into the system last week (November 4-11, 2024), swiftly stabilizing the overnight interbank interest rate.
The Stock Market Blues: A Tale of Woes and Worries
The VN-Index has been struggling to conquer the 1,300-point threshold and is now falling deeply from this region.
