According to Saigon Securities Incorporate (SSI), the cash was pumped through the bill issue channel to meet the rising capital demands as Tet (Vietnamese Lunar New Year) approaches.
The past week also saw the inter-bank rates inch up by 0.1 - 0.22 percentage points, pushing the overnight rate to 1.57% and the one-week rate to 1.65%. However, the one-month rate inched down by 0.05 percentage points to 3.4%.
Despite the hike, inter-bank rates were still low compared to the same period in previous years. For example, ahead of Tet last year, the inter-bank rates surpassed 2% for overnight and one-week loans.