Large amount of money withdrawn via open market operation hinh anh 1The central bank has withdrawn 177 trillion VND (7.79 billion USD) via open market operations and the issue of treasury bills in the past week (Photo:

Hanoi (VNA) - The State Bank of Vietnam withdrew a large amount of money worth 177 trillion VND (7.79 billion USD) via the open market operation and the issue of Treasury bills in the past week.

A report from the Saigon Securities Incorporate (SSI) showed that the central bank issued 14-day T-bills worth 50 trillion VND in the week.

According to the SSI, the withdrawing was made after the central bank had to pump a large amount of money to the banking system to support the liquidity before Tet (Lunar New Year) when the capital demands surged sharply.

In the past week, interest rates for Vietnamese dong loans of different tenors also dropped sharply on the inter-bank market.

The overnight rate was quoted at 1.6 percent against 4.45 percent at the end of previous week.

The rates for one-week, two-week and three-week loans also stood low at 2 percent, 2.9 percent and 3.8 percent against 4.67 percent, 4.73 percent and 4.8 percent at the end of previous week.

SSI forecast that interest rate on the inter-bank market would continuously decline next week.-VNA