Currency: Vietnam dong steady as black market spread widens, SBV injects liquidity, Tuesday
The State Bank of Vietnam (SBV) maintained its central exchange rate at VND 25,189 per US dollar for the second consecutive day on September 23, amid mounting pressure in unofficial currency markets.
While official rates remained steady, with Google Finance showing a mid-market level of VND 26,420, the black market continued to show signs of strain.
The parallel market mid-rate edged higher to VND 26,540, widening the gap between official and unofficial rates to 5.36 percent from 5.28 percent recorded the previous day.
Central Bank Ramps Up Liquidity Support
In response to market conditions, the SBV significantly increased its deployment of short-term liquidity instruments.
The central bank’s repo operations saw substantial expansion, with 14-day and 28-day tenor injections surging to US$189.25 million each, representing a five-fold increase from the previous session’s US$37.85 million.
Seven-day repos remained at US$37.85 million, while 90-day operations held steady at the same level.
Notably, the central bank refrained from issuing any treasury bills during this period, focusing instead on repo mechanisms to provide liquidity to the banking system.
Interbank Rates Hold Steady
Despite the increased central bank intervention, interbank lending costs remained unchanged across all tenors.
Overnight rates stayed at 3.89 percent, with one-week rates at 4.08 percent.
Longer-term rates also held firm, with one-month lending at 5.07 percent and six-month rates at 5.83 percent.
| 22 Sep | 23 Sep | |
| SBV: Central Exchange Rate | 25,189 | 25,189 |
| SBV: Today – Yesterday | 3 | 25,189 |
| Google Finance: Mid Market Rate | 26,417.43 | 26,420 |
| Google Finance: Today – Yesterday | 32.43 | 26,420 |
| Black Market Buy (Ty Gia USD) | 26,470 | 26,490 |
| Black Market Sell (Ty Gia USD) | 26,570 | 26,590 |
| Black Market Mid-Market (Ty Gia USD) | 26,520 | 26,540 |
| Mid Market: Black Market – SBV Central Exchange Rate | 1,331 | 1,351 |
| Difference: Black Market – SBV Central Exchange Rate | 5.28% | 5.36% |
| Repos – 7 Days US$ | $37,821,246 | $37,850,200 |
| Repos – 14 Days US$ | $37,853,800 | $189,251,000 |
| Repos – 28 Days US$ | $37,833,737 | $189,251,000 |
| Repos – 91 Days US$ | $37,826,545 | $37,850,200 |
| T-Bills – 7 Days US$ | 0 | 0 |
| Interbank Interest Rates: Overnight | 3.89 | 3.89 |
| Interbank Interest Rates: 1 Week | 4.08 | 4.08 |
| Interbank Interest Rates: 2 Weeks | 4.91 | 4.91 |
| Interbank Interest Rates: 1 month | 5.07 | 5.07 |
| Interbank Interest Rates: 3 Months | 5.41 | 5.41 |
| Interbank Interest Rates: 6 Months | 5.83 | 5.83 |
