Vietnam Launches Six-Month Foreign Exchange Swap, Providing Nearly VND 50 Trillion in First Round
The State Bank of Vietnam has launched a six-month foreign exchange swap for credit institutions with an initial size of US$2 billion. The first round on November 9 provided nearly VND 50 trillion to the banking system. Bankers say the move could ease year-end liquidity pressure, though any reduction in lending rates will depend on factors such as each bank’s funding costs.
The State Bank of Vietnam has launched a six-month foreign exchange swap for credit institutions with an initial size of US$2 billion. Its first round on November 9, 2026, provided nearly VND 50 trillion to the banking system, aiming to add dong liquidity and ease pressure from rising year-end funding demand.
The State Bank of Vietnam has introduced a six-month foreign exchange swap with an initial size of US$2 billion.（VietVance）
Under the arrangement, banks exchange foreign currency for Vietnamese dong and agree to reverse the transaction at maturity. Since late 2025, the State Bank of Vietnam has conducted swaps with terms of one to two weeks on several occasions; the six-month term gives banks more time to manage their funding. The funds must still be repaid when the swaps mature, and the operation’s effect on liquidity depends on its size, timing and coordination with other monetary policy tools.
A State Bank of Vietnam representative said the six-month interbank foreign exchange swap rate fell to a level comparable to the central bank’s quoted rate after the operation was announced. Swap rates for terms of three months or longer have also trended downward. Trần Chí Thanh, deputy CEO of Vietnam International Bank (VIB), said the bank took part in the first round, helping it manage year-end liquidity and potentially supporting further lending.
The State Bank of Vietnam said the six-month interbank foreign exchange swap rate fell to a level comparable to its quoted rate after the operation was announced.（VietVance）
Vũ Minh Trường, deputy CEO of Vietnam Prosperity Bank (VPBank), said the 2.25% swap cost in this round was relatively reasonable. Transactions conducted in November 2026 are expected to mature around May 2027, covering funding needs around year-end settlement and Lunar New Year. Whether lending rates fall as a result will still depend on each bank’s funding structure, funding costs, credit quality and business strategy.
Source: VietVance
