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. It was reported the SBV has net bought the dollar to date this year to build up the country’s foreign reserves. This allows them to have long-term capital to meet the central bank’s regulation on reducing short-term funds for medium- and long-term loans to 40 per cent against last year’s rate of 45 per cent.

Source: Viet Nam News March 22, 2019 05:03 UTC