The State Bank of Vietnam (SBV) will offer lenders up to $2bn through a 182-day foreign exchange swap on November 6, the central bank announced on November 4. The six-month tenor is far longer than the swaps the regulator has run so far this year.
According to The Investor, funding demand across Vietnam’s banking system has been climbing, and the SBV has repeatedly turned to swaps to supply dong liquidity. Brokerage VPS Securities JSC said earlier operations in 2026 typically lasted between three and 21 days, with caps of $1bn to $2bn. In September, the central bank held a seven-day, $2bn swap on September 21 and a three-day, $1bn swap on September 28.
Under the new deal, the SBV will purchase dollars at VND24,399 ($0.95) each and resell them at a forward price of VND24,704. Settlement is set for November 9, and the contracts expire on May 10, 2027. Credit institutions and foreign bank branches qualify if they hold medium- or long-term foreign loans or international bonds with at least 12 months left to maturity. No single bank may take more than 80% of the total. The operation could inject up to VND48,798bn into the system.
In a flash report, VPS said the swap could relieve liquidity strain and bring down interbank rates. It added that the longer tenor would spare banks from rolling over funding repeatedly and could reduce the pressure to raise deposit rates for households and businesses.
VPS also noted that the VND305 spread, roughly 2.51% a year, does not capture the full cost to banks, which also depends on what they paid to raise dollars. As a result, the gains for funding costs and margins will differ from lender to lender. The brokerage described the swap as a targeted liquidity tool, not a move towards broad monetary easing. The dong will flow back out in May 2027 unless the contracts are extended or replaced.
On the day of the announcement, the VN-Index rose 33.4 points, or 1.97%, to 1,733.02. The gain ended a run of four straight losing sessions. Trading value on the Ho Chi Minh Stock Exchange climbed 38.8% to VND17,955bn. Brokerage shares led the rally, with SSI up 6.53% and VND up 6.90%.
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