SBV takes more actions to stabilise foreign exchange rates
Illustrative image (Photo: VNA)
The State Bank of Vietnam (SBV) on April 23 took some moves like issuing treasury bills (T-bills), further employing T-bills as an open market operation (OMO), and stipulating liquidity and interest rates in the inter-bank market in the face of surging USD/VND exchange rates.
The central bank lent nearly 36 trillion VND (1.4 billion USD) for a 14-day term to nine members via the OMO channel. The bid-winning interest rate rose to 4.25% per year from 4% per year as recorded recently.
The seven-day loan, issued on April 16 via the OMO channel, also matured on April 23 with total value approximating 12 trillion VND.
The bank also continued to issue 2.15 trillion VND worth of 28-day T-bills with an interest rate of 3.73%. Two members won the bidding.
Besides, the T-bills issued on March 26 also became mature on April 23, enabling the central bank to inject 3.7 trillion VND back to the market.
Experts said the maintenance of inviting bids for T-bills will help the SBV form a steady zone of floor prices for inter-bank interest rates via bid-winning rates. The concurrent use of T-bills and OMO aims to serve the twin targets of guaranteeing liquidity for the banking system to maintain low interest rates in the market and easing pressure to narrow the USD/VND exchange rate differences in the inter-bank market.
Talking to the press, Tran Duc Anh, Director for macro-economy and market strategy at the KB Securities Vietnam JSC, held that the SBV has carried out many measures for stabilising exchange rates like attracting money flows via T-bills in the open market.
However, such moves are still not strong enough to stabilise foreign exchange rates as inter-bank interest rates keep growing. Therefore, the bank may take stronger interventions in the time ahead, he opined.
SBV Deputy Governor Dao Minh Tu affirmed that exchange rates form a critical factor in macro-economic governance. They affect not only the value of the Vietnamese dong or people’s purchasing demand but also policies, macro-economic stability, inflation control, market psychology, and investors’ trust.
Therefore, the SBV always views stipulating exchange rates as one of the extremely important tasks, he said, noting that it will continue flexible governance to ensure exchange rates changes in line with the common trend and the foreign currency balance is guaranteed for legal demand in the market.
On April 23, the central bank set the daily reference exchange rate at 24,275 VND per USD, up 3 VND from the previous day./.
Related News
Latest News
![Ensure expenditure control and quick processing of public investment payment documents](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/26/16/102024072310412620240726164104.jpg?rt=20240726164106?240727080224)
Ensure expenditure control and quick processing of public investment payment documents
08:02 | 27/07/2024 Finance
![Perfecting the legal framework to promote upgrading the stock market](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/25/22/croped/132024072310541020240725221344.jpg?240726081814)
Perfecting the legal framework to promote upgrading the stock market
08:18 | 26/07/2024 Finance
![Margin loan continues hit new record](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/24/14/croped/fiin2024072315213620240724145347.jpg?240725092004)
Margin loan continues hit new record
09:20 | 25/07/2024 Finance
![Vietnam needs comprehensive regulatory framework to attract green financing](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/24/14/croped/green-finance-566620240724141129.5511800.jpg?240724021157)
Vietnam needs comprehensive regulatory framework to attract green financing
14:11 | 24/07/2024 Finance
More News
![2025 budget estimation must be practical, accurate and efficient](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/23/13/croped/z5648711762772-4c57b15495cfcb197f8723d749fe4aa52024071917513120240723135923.jpg?240723023829)
2025 budget estimation must be practical, accurate and efficient
14:38 | 23/07/2024 Finance
![The corporate bond market will be more vibrant in the second half of the year](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/22/15/croped/112024071818564620240722155216.jpg?240723082100)
The corporate bond market will be more vibrant in the second half of the year
08:20 | 23/07/2024 Finance
![Prioritize resources and promptly supplement capital for policy credit](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/17/14/nhcsxh-quang-ninh-1202407022251172024071616173420240717141834.jpg?rt=20240717141837?240722100700)
Prioritize resources and promptly supplement capital for policy credit
10:06 | 22/07/2024 Finance
![Measures suggested to boost startups’ access to capital](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/21/19/croped/measures-suggested-to-boost-startups-access-to-capital-56220240721193808.3646770.jpg?240721073852)
Measures suggested to boost startups’ access to capital
19:38 | 21/07/2024 Finance
![Inflationary pressure seen from monetary policy](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/18/22/croped/12024071118383020240718224146.jpg?240721094724)
Inflationary pressure seen from monetary policy
09:47 | 21/07/2024 Finance
![Banks with the problem of promoting credit growth](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/18/22/croped/142024070515243520240718222634.jpg?240720064949)
Banks with the problem of promoting credit growth
18:49 | 20/07/2024 Finance
![Proposal to increase Special Consumption Tax on tobacco products](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/19/15/croped/z5638560592107-bb19f9b3b6635b5bb407c871b1aff5ea2024071615410820240719150329.jpg?240720095049)
Proposal to increase Special Consumption Tax on tobacco products
09:50 | 20/07/2024 Finance
![Savings of individual customers at banks hit record high](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/19/14/croped/362413-savings20240719143011.3054670.jpg?240719023032)
Savings of individual customers at banks hit record high
14:30 | 19/07/2024 Finance
![Managing fiscal policy has achieved many positive and comprehensive results](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/18/22/croped/z5634201788386-8cf5a37a33eec7b9e4b5f8d46c60d6dc2024071509390720240718221008.jpg?240719021205)
Managing fiscal policy has achieved many positive and comprehensive results
14:12 | 19/07/2024 Finance
Your care
![Ensure expenditure control and quick processing of public investment payment documents](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/26/16/medium/102024072310412620240726164104.jpg?rt=20240726164106?240727080224)
Ensure expenditure control and quick processing of public investment payment documents
08:02 | 27/07/2024 Finance
![Perfecting the legal framework to promote upgrading the stock market](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/25/22/croped/medium/132024072310541020240725221344.jpg?240726081814)
Perfecting the legal framework to promote upgrading the stock market
08:18 | 26/07/2024 Finance
![Margin loan continues hit new record](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/24/14/croped/medium/fiin2024072315213620240724145347.jpg?240725092004)
Margin loan continues hit new record
09:20 | 25/07/2024 Finance
![Vietnam needs comprehensive regulatory framework to attract green financing](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/24/14/croped/medium/green-finance-566620240724141129.5511800.jpg?240724021157)
Vietnam needs comprehensive regulatory framework to attract green financing
14:11 | 24/07/2024 Finance
![2025 budget estimation must be practical, accurate and efficient](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/23/13/croped/medium/z5648711762772-4c57b15495cfcb197f8723d749fe4aa52024071917513120240723135923.jpg?240723023829)
2025 budget estimation must be practical, accurate and efficient
14:38 | 23/07/2024 Finance