Vietnam - SBV to withdraw over 80tr dong via OMO this week

As per the maturity plan, this week, the State Bank of Vietnam (SBV), the country's central bank will withdraw over 80 trillion dong from commercial banks via open market operations (OMO).

Particularly, according to the loan term, in the first week after the long week Lunar New Year (Tet) holiday (from January 30 to February 3, 2012), 66.219 trillion dong that was pumped in the week between January 9 and 13 for 21-day term by the central bank will be matured, which means that commercial banks will have to pay this amount of money to the central bank.

In addition, 13.857 trillion dong that the central bank also lent to commercial banks via OMO in the week between January 16 and 20 will be also matured.

Totally, the central bank will withdraw over 80 trillion dong from commercial banks.

This will be significant pressure for commercial banks who borrowed capital via OMO and maybe the central bank will continue to inject capital on OMO, despite the technical nature, to reschedule loans for some banks and avoid causing difficulties in liquidity issue.

In the last week of the year, the central bank pumped total 78.857 trillion dong on OMO while withdrawing 46.441 trillion dong, leading to a net injection of 32.416 trillion dong.

Thus, in the last two weeks of 2011, the central bank made a net injection of 71.065 trillion dong.

VietBiz24

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