Vietnam Central Bank Net Injects VND4Tln Last Week: BVSC

The State Bank of Vietnam (SBV) net pumped VND3.915 trillion through open market operations (OMO) in the week ending Nov 2 after it pumped VND6.819 trillion and withdrew VND2.904 trillion, the Bao Viet Securities Company (BVSC) said.

The net injection last week also ended the streak of eight consecutive weeks of monetary withdrawal on OMO.

The monetary authority also sold VND1.338 trillion worth of T-bills for 91-day maturity during the week.

Last Friday alone, the central bank net pumped VND4.975 trillion via OMO, marking the biggest monetary injection since August 22, when the SBV had to pump up to VND13.025 trillion to ease liquidity tension for the whole system, following the arrest of ACB co-founder Nguyen Duc Kien.

In the previous week, the average interbank rate was recorded at 2.25-2.75% p.a. for overnight; 2.85-4.25% for 1-week; 3.75-4.75% for 2-week and 6-7.5% for 1 month terms.

Transactions in the interbank market were mostly for short terms like overnight or one week. Low interbank rates in the past time partly reflected ample liquidity of some commercial banks and demonstrates falling demand for interbank funds after the central bank asked to make provisions for interbank lending, BVSC noted.

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