From today, October 19, the State Bank will expire credit notes.

On October 19, the State Bank will have to pump VND10,000 billion back into the system. This is the amount that the State Bank withdrew through the treasury bill channel on September 21 (28-day term, maturity date October 19).

Recently, the State Bank has consecutively issued 20 treasury bills with a total accumulated scale of nearly VND255,700 billion. In the last 5 trading sessions alone, this agency has withdrawn a net VND90,000 billion.

Economic experts say that the State Bank's continuous withdrawal of money has helped ease the tension in the exchange rate. According to KB Securities Vietnam Joint Stock Company (KBSV), the fact that overnight interbank interest rates have returned to very low levels, the interbank exchange rate remains high, and the VND/USD interest rate gap remains high stimulates speculative trading activities, putting pressure on the exchange rate. The State Bank will continue to issue new treasury bills to replace matured treasury bills.

KBSV proposed three scenarios, corresponding to different exchange rate zones. According to the first scenario, if the USD exchange rate remains at around 24,000 to 24,400 VND, the State Bank may issue an average of about 12,000 billion VND in treasury bills per session.

In case the exchange rate exceeds the threshold of VND24,500, the State Bank will issue an average volume of VND20,000 billion/session until the exchange rate shows clear signs of cooling down. In the third case, if the USD exchange rate approaches the VND25,000 mark, KBSV does not rule out the possibility that the State Bank will sell USD forwards to stabilize the exchange rate.

Deputy Governor Pham Thanh Ha said that the State Bank had to regulate short-term bills to reduce excess liquidity in the system, trying not to have a big impact on interest rates. Currently, interbank market interest rates remain stable.

The central exchange rate between the Vietnamese Dong (VND) and the US Dollar (USD) today was announced by the State Bank at 24,096 VND/USD, up 3 VND compared to yesterday. With a +/- 5% margin currently applied, the ceiling rate applied by banks is 25,300 VND/USD and the floor rate is 22,891 VND/USD.

Previously, in yesterday's session on October 18, the State Bank continued to offer 28-day treasury bills under the interest rate bidding mechanism. As a result, 8/9 participating members won the bid with a total volume of VND12,050 billion, the winning interest rate remained at 1%.