State Bank net withdraws, interbank interest rates decrease, black market USD remains high

In yesterday's trading session, the State Bank withdrew a net VND5,422 billion from the market through open market operations, and interbank interest rates fell to 4.75% (overnight term). The exchange rate on the free market this morning was close to VND27,000/USD.

On the collateralized lending channel yesterday (September 5th), the State Bank of Vietnam offered VND 2,000 billion for a 7-day term, VND 10,000 billion for a 14-day term, VND 4,000 billion for a 28-day term, and VND 1,000 billion for a 91-day term, all at an interest rate of 4.0%. There were 1,525.34 billion VND successful bids for the 7-day term, VND 9,065.94 billion for the 14-day term, and VND 3,509.72 billion for the 28-day term; no successful bids were made for the 91-day term. VND 19,523.06 billion matured.

Thus, yesterday, the State Bank of Vietnam withdrew a net 5,422 billion VND from the market through open market operations during yesterday's trading session.

On the interbank market yesterday, the average VND interest rate decreased by 0.05 - 0.25 percentage points across all maturities of 1 month or less compared to the previous session. Accordingly, the overnight lending rate was 4.75%, down from 5% on September 3rd.

This morning, the central exchange rate for the VND/USD pair, announced by the State Bank of Vietnam for the trading session on September 4th, is 25,248 VND, an increase of 2 VND compared to the previous announcement. With a trading band of ±5% compared to the central rate, the ceiling exchange rate is 26,510 VND/USD and the floor exchange rate is 23,986 VND/USD.

The selling price of USD at banks this morning remained basically stable, mainly at 26,510 VND/USD, an increase of 2 VND/USD for both buying and selling compared to the previous session. The USD exchange rate on the free market this morning was basically unchanged for both buying and selling compared to the previous session, with the selling price around 26,900 VND/USD.

This morning (9:00 AM - Vietnam time), the USD stood at 98.14 points in the global market, trending downward as the likelihood of a 0.25% interest rate cut by the Fed grew closer. The odds of a Fed rate cut at its policy meeting on September 16th and 17th have risen to nearly 100%, up from 87% last week (according to CME FedWatch data).

Recently, many investors around the world have reduced their holdings of USD and shifted to speculating on gold due to concerns about US employment data. Last night ( Hanoi time), ADP released a report showing that private sector employment fell to 54,000 new jobs created in August, significantly lower than the forecast of 65,000 jobs and the 106,000 jobs achieved in July.

Data on initial jobless claims and the number of US workers laid off in August also increased. This indicates that the US labor market continues to weaken. This will keep the USD on a downward trend as demand for holding it is low. Today, the US will release its non- farm payrolls report. According to experts, the USD will continue to fall if US employment data worsens.

Source: https://baodautu.vn/ngan-hang-nha-nuoc-hut-rong-lai-suat-lien-ngan-hang-giam-usd-cho-den-neo-muc-cao-d378904.html