
A banking economist said the State Bank of Vietnam’s six-month FX swap provides banks with dong funding for a defined period while they temporarily exchange dollar holdings. The planned maximum is US$2 billion, or about VND48.8 trillion, with the amount actually supplied dependent on transaction results.
Longer-maturity dong liquidity may reduce banks’ funding costs and support lower lending rates, which could ease financing conditions for businesses. The mechanism has no direct feed-commodity supply or demand effect.
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