Update news monetary policy
Vietnam’s banking system is showing signs of returning to a period of money surplus as no bank needs the State Bank of Vietnam's (SBV) capital in the open market operation (OMO) channel and overnight interbank interest rates have dropped sharply.
The State Bank of Vietnam (SBV) has withdrawn a significant amount of money out of the banking system with an aim to increase the interest rate of the Vietnamese dong.
Vietnam’s central bank net withdrew over VND30 trillion from the market last week as the banking system saw surplus liquidity due to slow credit growth.
The SBV last week raised the 2022 credit growth target for the domestic banking system by 1.5-2 percentage points from its previous target of 14 per cent, allowing commercial banks to pump an additional VND240 trillion into the economy.
Some friends of mine asked me the other day if they should buy USD to hoard after the forex trading band was raised by the State Bank of Vietnam (SBV) to 5 percent. In the black market, of course.
The State Bank of Vietnam (SBV) withdrew nearly VND41 trillion ($1.7 billion) through open market operations as the US dollar rose to over VND24,000 on September 26-30, 2022.
A recent money market report of Saigon Securities Incorporation (SSI) showed the SBV last week net withdrew a total of VND34.6 trillion through the OMO channel.
The State Bank of Vietnam (SBV) withdrew a net amount of VND57.6 trillion from the market to keep liquidity in the banking system scantly sufficient, which is an apparent move to buoy interest rates.
ADB Country Director Andrew Jeffries has talked on the recent interest rate hike by the State Bank of Vietnam in the context of the Fed, ECB and a number of countries raising their rates to curb inflation.