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OMO net pumping evolution since the beginning of 2025. Unit: VND billion
Source: VietstockFinance
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Specifically, the SBV continued to refrain from issuing new bills, while the issuance volume on the term purchase channel reached 151,957 billion VND with a fixed interest rate of 4%/year, meeting the large maturity volume (139,980 billion VND).
By the end of August 11, the net capital injection through the open market reached 11,957 billion VND, bringing the circulation volume on the term purchase channel to 256,422 billion VND.
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Evolution of overnight interbank interest rates since the beginning of 2024. Unit: %/year
Source: VietstockFinance
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In the interbank market, the overnight rate surged to 6.25%/year on August 8, 89 basis points higher than the previous week, while the average trading volume slightly decreased to nearly VND 528 thousand billion/day.
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DXY evolution from the beginning of 2025 to August 8, 2025
Source: marketwatch
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In the international market, the US Dollar Index (DXY) – a measure of the greenback’s strength against a basket of six major currencies – fell 0.42 points from the previous week to 98.27 points. Pressure on the USD increased as the US imposed higher import tariffs on several countries from August 4, raising concerns about a slowdown in US economic growth. Additionally, the number of initial jobless claims rose to a one-month high, indicating a weakening labor market. These factors heightened expectations for an early Fed rate cut, diminishing the appeal of the USD.
Domestically, Vietcombank’s exchange rate on August 8 was listed at 26,010-26,400 VND/USD, a slight increase of 10 VND in both buying and selling rates compared to the previous week.
– 10:33 12/08/2025
A Strong Currency Doesn’t Mean a Weak Economy
“At first glance, the exchange rate of over 25,000 VND to 1 USD might lead some to conclude that the Vietnamese dong is significantly weaker than the US dollar. However, a single exchange rate at a frozen moment in time reveals nothing about the inherent strength or weakness of a currency.”
US Dollar Makes a Modest Gain at Commercial Banks on August 11
As of 9 a.m. on August 11th, Vietcombank and BIDV listed their USD exchange rates at 23,485-23,560 VND/USD (buy-sell), a 10-dong increase from the buying and selling rates listed on August 8th.
The Greenback Retreats
“The US dollar weakened in the week of August 4–8, 2025, as markets reacted to President Donald Trump’s new tariff policies and disappointing jobs data that fueled expectations for an interest rate cut. “
The Vietnamese Dong’s Future: Navigating the Volatile USD Waters
The USD is showing signs of weakening but remains stubbornly above the 26,000 VND mark. However, experts suggest that the pressure on Vietnam’s exchange rate is easing, with predictions of a modest 3-4% depreciation for the Vietnamese Dong this year.
Injecting Funds into the Economy
In the face of mounting pressure from exchange rates and rising inflation, lending rates have remained steadfastly low.
