Over the past several weeks, moves to regulate liquidity through the State Bank of Vietnam (SBV)’s bill channel has caused VND interest rates in the interbank market to increase sharply, with the rate difference between USD and VND initially narrowing. But the exchange rate continues to set a new peak. Analysts believe that in the context of major pressure to fight inflation around the world, the domestic exchange rate will not cool down anytime soon. In the context of escalating geopolitical tensions, the exchange rate may exceed the SBV’s amplitude ceiling. In this situation, stronger measures, such as raising operating interest rates, may be considered in the middle of the year. To cope with unpredictable fluctuations in exchange rates, the SBV has drafted amendments to Circular No. 02 on USD/VND forward exchange rates.