The State Bank of Vietnam (SBV) will continue to issue new bills to withdraw cash from the banking system as liquidity is abundant and interbank interest rates remain low, analysts forecast.

As the governance of the monetary policy has to concurrently guarantee multiple targets, including reducing interest rates, expanding credit, stabilising foreign exchange rates, and ensuring credit institutions’ safety, thorough consideration is needed before any steps are taken, Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu.

The State Bank of Vietnam (SBV) on October 9 continued to offer 28-day treasury bills (T-bills) through the interest rate auction mechanism.

The race to lower deposit interest rates among banks is expected to continue until the end of 2023, according to analysts.

Measures have been taken by the State Bank of Vietnam to reign in the rising US dollars against the VND.

The foreign exchange rate has significantly fluctuated recently but experts forecast the rate in the remaining months of 2023 will not be under great pressure as in 2022.

Politburo member, Head of the Party Central Committee's Economic Commission Tran Tuan Anh emphasised the huge potential for Vietnam to lure abundant, high-quality investment from the US at his reception for US Treasury Secretary Janet Yellen in Hanoi on July 20.

Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong and US Secretary of the Treasury Janet L. Yellen had a working session in Hanoi on July 20, pledging to maintain close cooperation between their agencies in the spirit of mutual respect.

The period of strong volatility of the US dollar has ended, and the US$/VND exchange rate in the last six months of 2023 will remain stable, experts have forecast.

The State Bank of Vietnam (SBV) is cutting down a series of key interest rates by 0.25%-0.5% from June 19, which is expected to make a double impact on the economy thanks to stronger credit activities and higher liquidity.