The State Bank has more solutions to stabilize exchange rates.

Accordingly, on April 23, the State Bank lent nearly VND36,000 billion to 9 members through the OMO channel with a term of 14 days, with the winning interest rate increased to 4.25%/year instead of 4%/year in the past.

In addition, the loan via OMO channel on April 16 (7-day term) also matured with a total value of nearly VND 12,000 billion, thereby attracting the corresponding amount of money.

Also in today's session, the State Bank continued to issue VND2,150 billion worth of treasury bills with a term of 28 days and an interest rate of 3.73%/year. There were 3 members participating and 2 members winning the bid. At the same time, the treasury bills issued on March 26 matured, thereby the State Bank pumped VND3,700 billion back into the market.

According to economic experts, maintaining the T-bill bidding channel will help the State Bank establish a certain floor price for interbank interest rates through the T-bill winning interest rate. For banks in need of support, the State Bank is willing to lend through the OMO channel, but these banks must accept a fixed interest rate of 4.25%/year.

Experts emphasized that the parallel use of two tools, credit notes and OMO, serves the dual goal of ensuring liquidity for the banking system to maintain low interest rates in the market, while reducing pressure on exchange rates by narrowing the gap between USD and VND interest rates in the interbank market.

Speaking to the press, Mr. Tran Duc Anh, Director of Macroeconomics and Market Strategy at KB Securities Vietnam, said that the State Bank has taken many measures to stabilize the exchange rate, such as net withdrawal of money through the open market (OMO) treasury bill channel. However, this activity is not enough to stabilize the exchange rate when interbank interest rates continue to increase. Therefore, Mr. Tran Duc Anh said that it is not impossible that the State Bank will have to intervene more strongly in the near future.

To stabilize the exchange rate, Mr. Pham Chi Quang, Director of the Monetary Policy Department (State Bank), said that the State Bank has closely monitored the exchange rate and has taken measures to relieve market pressure since March, through the issuance of treasury bills to neutralize excess money in the market, reduce pressure on the exchange rate, and make the exchange rate fluctuate within the allowable range, within the State Bank's management capacity.

Along with that, the State Bank has taken stronger measures by selling foreign currency to credit institutions with negative foreign currency status at an intervention price of VND25,450/USD.

Deputy Governor Dao Minh Tu also affirmed that exchange rate is one of the factors related to and plays a very important role in macroeconomic management. The Deputy Governor said that exchange rate not only affects the value of money and people's purchasing power, but also greatly affects policies, especially macroeconomic stability as well as inflation control, market psychology, and investor confidence.

Therefore, the State Bank always considers exchange rate management as one of the most important and focused tasks. In the coming time, the State Bank will continue to operate according to a very flexible mechanism, ensuring that its operations can make the exchange rate fluctuate in accordance with the general trend and also ensure the set goal of stability, ensuring harmony between the foreign currency status always maintaining a positive state as well as ensuring foreign currency balance for the legitimate needs of the economy.

On April 23, the State Bank announced the central exchange rate between the Vietnamese Dong and the US Dollar at 24,275 VND, an increase of 3 VND compared to yesterday.

The USD price at BIDV is listed at 25,185 - 25,485 VND/USD (buy - sell), up 12 VND in both buying and selling compared to yesterday. At Vietcombank, the greenback price is listed at 25,148 - 25,488 VND/USD (buy - sell), up 15 VND in both buying and up 33 VND in selling compared to yesterday.

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