Supplement regulations on selling foreign currency in cash to individuals serving tourism and medical treatment

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The State Bank of Vietnam is about to add regulations on foreign currency transactions between credit institutions and businesses and selling foreign currencies in cash to individuals for the purpose of tourism, business, medical treatment

Bổ sung qui định bán ngoại tệ tiền mặt cho cá nhân phục vụ du lịch, chữa bệnh - Ảnh 1.

Illustration. (Source: VNA)

The State Bank of Vietnam (SBV) has just announced a draft circular guiding foreign currency transactions on the foreign currency market of credit institutions licensed to conduct foreign exchange operations, replacing Circular No. 15/2015 / TT -NHNN. In particular, this agency proposes to supplement regulations on selling foreign currency in cash to individuals for the purpose of tourism, business, medical treatment, study, and visits to be allowed to purchase foreign currencies for immediate.

In addition, the Draft Circular also amended the content of the transaction scope of the authorized credit institutions with customers as follows:

To allow foreign investors, who have invested in Government bonds issued in VND, to purchase forward transactions from authorized credit institutions for the purpose of preventing exchange rate risks.

Removing the minimum term of a swap transaction, credit institutions are allowed to carry out swap transactions with a term of less than 3 working days to meet the liquidity and capital management needs.

Supplementing the regulation on implementing forward transactions with residents to prevent exchange rate risks for medium – long term foreign loans in foreign currencies with a term or with the remaining term of more than 365 days.

The Draft Circular also supplements the provisions allowing credit institutions to be allowed to conduct semi-term transactions for foreign investors owning government bonds to meet the regulations on the purpose of transaction and the requirement of bond blockade. When the transaction matures, customers can swap transactions to extend the term to hedge risks for bonds. The total term of a forward transaction and swap transactions must not exceed the term of a frozen bond.

For the sale of foreign currency forward for the demand not due to payment: Draft Circular extends the time to determine the last day of the forward transaction (5 days before the due date of the customer) to allow credit institutions and customers to be more flexible when signing forward contracts.

Talking about the reasons for changing and supplementing the above provisions, the State Bank said that foreign currency transactions with customers are diversified, and are regulated by many legal regulations on foreign exchange management, along with that. The application of technology in the financial and banking sector is increasingly popular, so in the process of implementing Circular 15/2015 / TT-NHNN, credit institutions (CIs) have made recommendations, proposed to the State Bank to consider, handle and amend policies to support the market’s operation and development.

Therefore, the State Bank of Vietnam (SBV) review and amend the current regulations in Circular 15 to create more favorable conditions for market operations, to meet the requirements of financial integration with international currency and consistent with State management objectives.

Source: vietnambiz.vn – Translated by fintel.vn