The State Bank of Vietnam on October 3 offered 28-day treasury bills (T-bills) worth 10 trillion VND (409.9 million USD) through the interest rate auction mechanism.
Six out of seven participants won the bid at an interest rate of 1.18%, the highest level recorded since the first issuance on August 18.
Over the past nine trading sessions, the central bank has net withdrawn some 110 trillion VND from the banking system through T-bills channel.
T-bills are short-term debt securities with maturities typically ranging from a few days to one year. Issued by the State Treasury, T-bills serve as a means for the Government to raise short-term funds to finance its operations.
According to economic experts, the central bank's continuous issuance of T-bills is aimed at adjusting the short-term liquidity in the banking system, thus stabilising the USD/VND exchange rate and addressing the issue of excess capital.
The BIDV Securities Joint Stock Company (BSC) said this is a common practice of the central bank to regulate the abundant liquidity in the interbank market.
