The State Bank of Vietnam withdrew a net amount of over 20,000 billion VND.

From April 28 to May 2, 2025, the State Bank of Vietnam (SBV) conducted a net withdrawal of VND 20,350 billion from the banking system through the open market operations (OMO) channel.

Specifically, the State Bank of Vietnam injected nearly 5,920 billion VND into the market at an interest rate of 4% per year, while the volume of maturing funds reached approximately 26,270 billion VND, resulting in a net outflow of 20,350 billion VND from the system.

Interbank interest rates remained low, with overnight rates staying below 3% this week. On April 28th, the overnight rate reached 2.54%, a slight increase of 0.08 percentage points compared to the lowest point of the previous week. Rates for maturities from one week to three months ranged from 4.16% to 4.77%, down from the end of last week (except for the three-month rate).

The State Bank of Vietnam has demonstrated flexibility in managing monetary policy to control liquidity and stabilize the financial market.

The State Bank of Vietnam's net withdrawal of funds, amidst persistently low interbank interest rates, indicates that the banking system has ample liquidity. The withdrawal of money from the system aims to control the money supply, stabilize the monetary market, and support monetary policy objectives.

On the other hand, the net withdrawal by the State Bank of Vietnam has had impacts on the financial market in many aspects, specifically:

Withdrawing Vietnamese dong from the system could help reduce pressure on the VND/USD exchange rate, especially given the narrowing interest rate differential between VND and USD.

At the same time, reduced liquidity in the banking system could affect the flow of money into the stock market, especially bank stocks such as CTG, MBB, andACB .

And if net liquidity continues to be drained, lending rates in the market could rise slightly, affecting the cost of borrowing for businesses and consumers.

On the other hand, the State Bank of Vietnam (SBV) continues to prioritize supporting system liquidity through reverse repurchase agreements (RRPs) with a base interest rate of 4% for maturities from 7 to 35 days, with a total issuance value reaching VND 220,000 billion in April. Meanwhile, the USD/VND exchange rate continues its upward trend, reaching VND 24,956/USD on May 3rd, an increase of VND 614 compared to the beginning of the year.

However, from a macroeconomic perspective, the State Bank of Vietnam's net withdrawal of over 20 trillion VND demonstrates flexibility in monetary policy management aimed at controlling liquidity and stabilizing the financial market. Investors and businesses should closely monitor further developments to develop appropriate financial plans.

Source: https://baodaknong.vn/nhnn-hut-rong-hon-20-000-ti-dong-251720.html