Central bank injects more money into market

State Bank of Viet Nam made a net cash injection of VND16 trillion (US$704.8 million) via open market operations in the past week to support liquidity of the banking system, Bao Viet Securities Co (BVSC) reported.

The central bank made a net cash injection of VND16 trillion (US$704.8 million) via open market operations in the past week. -Photo nhipcaudautu.vn

BVSC reported that the amount doubled that of the previous week.

The net cash injection, together with high inter-bank rate, showed that the liquidity of the banking system was not as good as the previous weeks, BVSC’s analysts said.

Inter-bank rate last week increased by 0.15 per cent to 0.28 per cent per year for all terms, pushing the overnight rate to 4.7 per cent per year, the one-week rate to 4.75 per cent and the two-week rate to 4.77 per cent.

During the week, the central bank stopped issuing T-bonds of all terms.

Source VNA