Vietnam’s central bank plans to buy US dollars. Could bank interest rates ease?
Vietnam’s central bank plans to buy US dollars regularly from November 11, 2026, at VND 25,500 per dollar. The purchases could add dong liquidity to the banking system, but the amount depends on banks’ willingness to sell dollars and other monetary operations. Deposit and lending rates may not fall immediately.
Vietnam’s central bank has announced a plan to buy US dollars in spot transactions at VND 25,500 per dollar on Mondays and Wednesdays, starting November 11, 2026. The transactions are open to credit institutions and foreign bank branches with positive foreign exchange positions. Purchases are capped at the amount needed to bring those positions into balance.
Vietnam’s central bank plans to begin spot dollar purchases on November 11, 2026.（VietVance）
After selling dollars to the central bank, banks will receive Vietnamese dong. Nguyễn Quang Huy, CEO of the Faculty of Finance and Banking at Nguyễn Trãi University, said that, unlike the previous six-month foreign exchange swaps, the dong received from a spot sale carries no repayment date tied to the transaction. The net increase in funds across the banking system will also depend on the central bank’s other liquidity operations.
After selling dollars to the central bank, banks will receive Vietnamese dong.（VietVance）
Demand for short-term funds remains. A November 10 macroeconomic report by An Binh Securities (ABS) showed that the overnight interbank dong interest rate rose from 3.7% on November 3 to 4.6% on November 9. Over the same period, outstanding open market operations increased from VND 116.381 trillion to VND 124.862 trillion. Nguyễn Quang Huy said improved short-term liquidity could help stabilize funding costs, but whether deposit and lending rates fall also depends on each bank’s credit demand, deposit growth and asset risks.
ABS modeled three dollar purchase volumes through March 31, 2027. Purchases of USD 2 billion, USD 6 billion and USD 10 billion would provide the banking system with about VND 51 trillion, VND 153 trillion and VND 255 trillion, respectively. Under the USD 6 billion base case, ABS expects the overnight interbank interest rate could return to an annualized range of 3% to 4%. These are scenario forecasts, not funds the central bank has already injected.
ABS estimated the amount of dong that different dollar purchase volumes could supply through March 31, 2027.（VietVance）
Transaction volumes remain sensitive to the exchange rate. On November 9, the interbank rate was VND 25,547 per dollar, only about 0.18% above the central bank’s proposed purchase price. ABS said initial transaction volumes may therefore be small. It also noted that the consumer price index rose 5.09% year on year in October, above the target of about 4.5%. The central bank must consider inflation pressure while supporting liquidity.
Source: VietVance
