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OMO net pumping developments since the beginning of 2025. Unit: VND billion
Source: VietstockFinance
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Specifically, the SBV has issued term purchase channels with a total volume of up to VND 136,060 billion at a fixed interest rate of 4%/year, while VND 117,704 billion matured on this channel, mainly concentrated in the sessions of August 22 and 25.
Closing the week of August 25, the operator net injected VND 18,356 billion into the open market, bringing the circulating volume on the term purchase channel to VND 249,738 billion.
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Developments in overnight interbank interest rates since the beginning of 2025. Unit: %/year
Source: VietstockFinance
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Overnight interbank interest rates fluctuated significantly last week, falling below 4% at times but rising back to 4.76%/year on August 22, up 27 basis points from the previous week. The average daily trading volume slightly increased to nearly VND 511 trillion, up from VND 505 trillion the previous week.
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DXY developments from the beginning of 2025 to August 26
Source: marketwatch
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In the international market, the USD Index (DXY) decreased by 0.11 points to 97.73 points, marking the third consecutive week of decline. The greenback weakened after Fed Chairman Jerome Powell signaled a more dovish policy stance amid concerns over slowing economic growth.
Domestically, Vietcombank’s exchange rate on August 22 was listed at 26,130 – 26,520 VND/USD (buying – selling), up VND 70 in both directions compared to the previous week.
In the context of a weakening USD, the SBV announced a shift to selling term foreign currencies with cancellation in the August 25-26 sessions instead of spot sales.
Under this mechanism, commercial banks can buy term USD at a fixed price from now on (e.g., VND 26,550/USD as announced by the SBV). If the exchange rate increases within one month, the banks can still buy at the fixed price, unaffected by market fluctuations. Notably, the SBV allows for cancellation of this transaction, meaning that banks can change their minds and cancel the contract the next day.
This measure is considered flexible by experts, helping to stabilize the market’s psychology and signal the SBV’s commitment to exchange rate stability in the near future.
– 11:03 26/08/2025
The Greenback Slides, but Domestic Rates Remain Lofty
“The US dollar continued its downward trajectory in the week of August 18-22, 2025, as markets reacted to hints of potential interest rate cuts from Federal Reserve Chair Jerome Powell. This development marked a significant shift in the currency’s performance, setting the stage for a potentially volatile period in global markets.”
The Fed’s Latest Cash Injection: A Boost or a Bust for the Economy?
The SBV’s decision to maintain an accommodative policy stance has provided Vietnamese banks with access to low-cost funds, but it has also exerted upward pressure on the USD/VND exchange rate, especially as the US dollar strengthens in the international market.
The Dark Side of the Greenback: Black Market Dollar Soars to Unprecedented Heights
The US dollar surged on the black market on August 22, reaching a record high of 26,630 – 26,730 VND/USD. This unprecedented spike highlights the significant demand for foreign currency in the underground market, a stark contrast to the official exchange rates.
The Abundant Forex Supply: Why Are Exchange Rates Still Rising?
The current exchange rate adjustment can be seen as a calculated move, carefully absorbing immediate pressures while providing room for the economy to breathe in the medium term.
The All-Time High: It’s Not Just Gold Bars, but USD Prices in Vietnam Too
The US dollar rate at commercial banks has surged, surpassing the 26,500 VND mark.
