State Bank withdraws nearly 10,000 billion VND from the market

Yesterday, September 21, 2023, the State Bank unexpectedly announced the issuance of VND 9,995 billion of 28-day treasury bills with a winning interest rate of 0.69%/year. The bid submission period began at 13:45 on September 21, 2023 and was closed at 15:00 on the same day. The interest payment method will be one time at the beginning of the period. The payment due date is October 19, 2023.

State banks withdrew nearly 10,000 billion dong from the market, picture 1 — State Bank issues nearly 10,000 billion VND of treasury bills for the first time in 6 months (Photo TL)

Thus, after more than half a year, the State Bank has used the forward sale operation to withdraw a certain amount of cash from the market. This move took place in the context of the system's continuous excess liquidity in recent times.

Along with that is the poor absorption capacity, relatively slow credit growth. As of September 15, 2023, credit growth only reached 5.56% while the whole year's target is 14%. The interbank interest rate level is still maintained at a low level.

The withdrawal of a large amount of cash from the market by the State Bank will affect the USD exchange rate. Accordingly, immediately after the State Bank issued the treasury bills, the USD price at commercial banks showed signs of cooling down. The USD exchange rate at Vietcombank has decreased from 24,550 VND to 24,460 VND.

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