Currency: Vietnam dong under pressure as exchange rate gap widens to 1.09 percent
The central exchange rate fixed by the State Bank of Vietnam (SBV) dropped by 11 dong to 25,166, Thursday.
Google Finance’s mid-rate also dipped to 26,135, a 20 dong decline from the previous day, while the unofficial market, according to Ty Gia USD, held flat at 26,420, increasing the spread to 285 dong.
SBV injects nearly US$1.8 billion in repos
The State Bank of Vietnam issued a total of US$1.805 billion in repos on 24 July, up from US$1.48 billion the day before. The largest increase came from 28-day repos, which jumped more than sixfold to US$380.3 million. The 7-day tenor also rose to US$552.2 million, while 14-day repos fell to US$868.7 million. A small 91-day operation of US$3.86 million was reintroduced.
Sharp rise in interbank lending rates
Interbank interest rates rose across all tenors, with overnight borrowing rates climbing from 4.93 percent to 5.26 percent. The 1-week rate hit 5.2 percent, while 6-month lending reached 5.4 percent, reflecting tight liquidity conditions.
Foreign exchange pressure intensifies
With the dong facing sustained downward pressure and interbank rates rising, the SBV appears to be using epos to stabilise short-term funding and dampen volatility.
The widening black market gap suggests ongoing demand for hard currency and limited confidence in the official rate path.
