The State Bank of Vietnam (SBV) offered 28-day Treasury bills (T-bills) on March 11 via auction worth nearly VND15 trillion ($612 million).

Six out of 16 participants won bids at an interest rate of 1.4 per cent per annum.

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

In the previous issuance of T-bills, from September 21 to November 9, the SBV held 34 auctions with a total value of over VND360.3 trillion ($14.7 billion).

The domestic exchange rate has continued increasing since February and hit a record high in the free market for the past five years, with the USD being valued at VND25,500-25,700 on March 11.

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.