The State Bank of Vietnam (SBV) pumped VND26 trillion into commercial banks through open market operations on Jan 17, the largest net injection since May 18, 2011, the local newswire NDHMoney.vn reported, citing Reuters’ data.

The central bank on January 16-17 extended loan term on OMO window from 7 days to 14 days and maintained 21-day term as the Lunar New Year holiday is one week ahead (Jan 21-Jan 29) and the central bank would be unable to withdraw funds via OMO in 7 days’ time.

In the first two days of this week, the central bank net pumped VND15 trillion on OMO, compared to the net injection of VND38.649 trillion last week.

On Jan 17, the central bank net pumped VND13.652 trillion via OMO, of which it injected VND20 trillion and VND6 trillion for 21- and 14-day windows, respectively and withdrew VND12.348 trillion.

From early this year, the SBV has been actively injecting liquidity to support local commercial banks in preparation for funding squeeze before the Tet holiday.

 

Source Sophie/ StoxPlus