The State Bank of Vietnam (SBV) offered Treasury bills (T-bills) on October 21 via auction worth over VND21.65 trillion ($854 million).

The figure brings the total amount of T-bills in circulation to VND33.950 trillion ($1.34 billion).

Five participants won bids for the 14-day T-bills at an interest rate of 3.74 per cent per annum, with total value of VND3.9 trillion ($153 million).

Twelve other participants won bids for 28-day T-bills at an interest rate of 4 per cent per annum, with total value of VND17.750 trillion ($700 million)

The auction is part of the central bank’s efforts to stabilize the USD/VND exchange rate and address the issue of excess capital.

The domestic exchange rate has continued increasing since early October with the USD being valued at VND25,380 – 25,500 in the free market on October 21, marking a record high since August 17 this year.

T-bills are short-term debt securities with maturities typically ranging from a few days to one year. Issued by the State Treasury of Vietnam, they serve as a means for the government to raise short-term funds to finance its operations.