Vietnam's central bank plans to conduct a 182-day foreign-exchange swap with credit institutions on November 6. The operation could supply up to nearly VND48.8 trillion in domestic currency, VnExpress reported, citing information from the Vietnam Interbank Market Research Association.
How the two legs are scheduled
The State Bank of Vietnam would purchase US dollars from banks on November 9 at VND24,399 per dollar. That purchase would provide dong liquidity, with the total determined by the volume of transactions banks undertake.
After 182 days, the central bank would sell the dollars back at VND24,704 per dollar and withdraw dong from the system. The announced arrangement therefore pairs an initial liquidity provision with a later reversal.
A longer term than earlier operations
Earlier currency swaps this year involved approximately $1 billion to $2 billion and generally had terms shorter than 30 days. According to the central bank account carried by VnExpress, this is its first use of the instrument with a relatively long maturity of about six months.
Officials expect the longer arrangement to improve the availability of dong funding, support banking-system liquidity and contribute to lower interest rates. The measure is also linked to the government's double-digit growth objective.
The central bank said flexible swaps had previously helped keep interest-rate differentials at reasonable levels and contain exchange-rate pressure. Its stated approach remains cautious monetary management coordinated with fiscal policy.
The next scheduled steps are the November 6 transaction and the November 9 dollar purchase. Participation will establish the actual size of the liquidity injection.