HÀ NỘI – Liquidity in the interbank market has been abundant, helping the State Bank of Việt Nam (SBV) resume the issuance of treasury bills after five months to withdraw Vietnamese đồng from the banking system. Reports from Saigon Securities Incorporation (SSI) showed the SBV withdrew VNĐ17 trillion (US$729.6 million) via the issuance of seven-day bills at interest rate of 3 per cent per year. In addition, the central bank also net withdrew another VNĐ6.4 trillion via open market operation (OMO). Though the SBV withdrew up to VNĐ162 trillion in the last five weeks, interest rates on the interbank market steadily dropped, especially during last week. Economist Lê Xuân Nghĩa said that although the central bank was very cautious about increasing the money supply in the market, the rise of Government bond yields is also putting more pressure on interest rates.

Source: Viet Nam News March 22, 2019 03:33 UTC