State Bank of Vietnam issues 409.9 million USD worth of T-bills
On October 3, the State Bank of Vietnam offered 28-day treasury bills (T-bills) worth 10 trillion VND (409.9 million USD) through the interest rate auction mechanism.
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Six out of seven participants won the bid at an interest rate of 1.18 per cent, the highest level recorded since the first issuance on August 18.
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| The State Bank of Vietnam on October 3 offered 28-day treasury bills (T-bills) worth 10 trillion VND. (Photo: VNA) |
Over the past nine trading sessions, the central bank has net withdrawn some 110 trillion VND from the banking system through the T-bills channel.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 stabilizing 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.
(Source: VNA)
