Liquidity in the inter-bank market has showed positive signs after several months of being under pressure.

The latest report from Saigon Securities Incorporate (SSI) showed that the central bank withdrew a total of VND18.46 trillion (US$811.4 million) through open market operations (OMO) last week, reducing the money being circulated in OMO to VND6.54 trillion, the lowest level in the past two months.

This is the first time since Tet (Lunar New Year) that the banking system has shown abundant liquidity. The central bank had to inject a significant amount of money through OMO to support liquidity of the banking system in the past months.

In the past week, owing to good liquidity, interest rates in the inter-bank market slid down constantly, hitting a two-month low of 4.16 per cent on May 11, down 27 basis points against the previous week. — VNS