Central Bank Net Pumps VND9 Tln via OMO in Oct 10-12

by lexie Thu Oct 13, 2011 2:15 pm

October 13, 2011

Central Bank Net Pumps VND9 Tln via OMO in Oct 10-12

The State Bank of Vietnam, the country’s central bank, net injected VND9 trillion into commercial banks through the open market operations from Oct 10 to Oct 12 to support liquidity in the banking system.

The central bank pumped VND2 trillion/day on Oct 10 and 11 and VND5 trillion on Oct 12.

October 11 saw bid volume surge to VND31.558 trillion, 10.52 times as large as the SBV’s offered volume, indicating local banks’ weak liquidity.

The net injection on OMO showed central bank’s effort to provide liquidity for the banking system, especially small banks and ease the interbank interest rates hike after the SBV took measures to strictly reinforce the interest rate cap at 14% and raised the refinancing rate to 15% from 14%.

The SBV was reported to net withdraw VND13 trillion on OMO from Oct 3 to Oct 7. The net withdrawal was for 14-day window, 14% interest rate per annum.

http://www.vietfinancenews.com/2011/10/central-bank-net-pumps-vnd9-tln-via-omo.html#more