The State Bank of Viet Nam (SBV) has issued record high bills worth some VND92.1 trillion (US$4.05 billion) until Monday to withdraw money from the banking system.

Reports from VP Bank Securities Company showed that last week alone, the SBV made a net withdrawal of VND50.5 trillion through the open market operation with the issue of bills with terms of 14 and 28 days, at interest rates of 0.6 and 0.9 per cent per year, respectively.

Despite the withdrawal, the interest rate of Vietnamese dong loans in the inter-bank market still declined sharply. The rate on Monday dropped by 0.02–0.05 percentage points for most terms against the previous week.

Specifically, the overnight rate on Monday fell sharply to 1.16 per cent against more than 4 per cent before Tet (Lunar New Year). The rates for one-week, two-week and one-month loans also reduced to 1.34, 1.66 and 2.40 per cent, respectively. — VNS