State Bank of Viet Nam made a net cash injection of VND16 trillion (US$704.8 million) via open market operations in the past week to support liquidity of the banking system, Bao Viet Securities Co (BVSC) reported.

BVSC reported that the amount doubled that of the previous week.

The net cash injection, together with high inter-bank rate, showed that the liquidity of the banking system was not as good as the previous weeks, BVSC’s analysts said.

Inter-bank rate last week increased by 0.15 per cent to 0.28 per cent per year for all terms, pushing the overnight rate to 4.7 per cent per year, the one-week rate to 4.75 per cent and the two-week rate to 4.77 per cent.

During the week, the central bank stopped issuing T-bonds of all terms. — VNS