The money market is seeing the first signs of loosening though the State Bank of Viet Nam has yet to make a decision on reducing benchmark interest rates.
Liquidity in the interbank market has been abundant, helping the State Bank of Viet Nam (SBV) resume the issuance of treasury bills after five months to withdraw Vietnamese dong from the banking system.
Transactions of Treasury bills and Government bonds have risen because
of the good liquidity of banks for the second consecutive week. Despite
this, positive credit growth in the banking system is out of sight.
The State Bank of Vietnam (SBV) issued VND5 trillion worth of 28-day
Treasury bills at 1.85% per annum to withdraw liquidity from commercial
banks on Monday.