35 C
Ho Chi Minh City
Saturday, May 18, 2024

Central bank injects VND36 trillion into banking system

By N. Tan

Must read

HCMC – Vietnam’s central bank has injected VND36 trillion into the banking system through open market operations (OMO).

On April 23, nine banks borrowed VND36 trillion from the State Bank of Vietnam (SBV) at an annual interest rate of 4.25% for a 14-day period, a slight increase from the previous rate of 4%.

Simultaneously, the central bank continued issuing bonds, with VND2.15 trillion worth of debt issued with a 28-day term and a yearly coupon rate of 3.73%. This move follows the maturity of a bond tranche issued on March 26, pumping VND3.7 trillion into the market.

Through bond issues and OMO, a net amount of VND25.5 trillion was funneled into the market on April 23. These money injections ensure ample liquidity for banks, keep interest rates as low as possible, and alleviate pressure on the exchange rate by narrowing the interest rate gap between the Vietnamese dong and the U.S. dollar in the interbank market.

The central bank quoted the central exchange rate between the dong and the dollar at VND24,275 on April 23, a VND3 increase from the previous day.

On April 19, the bank sold foreign currency to banks with a negative foreign currency balance at a rate of VND25,450 per dollar.

“This is a strong measure by the central bank to alleviate market concerns, ensure market liquidity, and meet the legitimate demand for foreign currency in the economy,” said Pham Chi Quang, head of the SBV’s Monetary Policy Department.

More articles


Please enter your comment!
Please enter your name here

Latest articles