Are foreign exchange operations in current transactions in the territory of Vietnam under the jurisdiction of the State Bank of Vietnam?
- Are foreign exchange operations in current transactions in the territory of Vietnam under the jurisdiction of the State Bank of Vietnam?
- Does the State Bank of Vietnam exercise management of foreign exchange operations in current transactions in the territory of Vietnam?
- What revenues do foreign exchange operations of the State Bank of Vietnam include?
Are foreign exchange operations in current transactions in the territory of Vietnam under the jurisdiction of the State Bank of Vietnam?
Pursuant to the provisions of Article 1 of Decree No. 102/2022/ND-CP on the position and functions of the State Bank of Vietnam as follows:
Position and functions
The State Bank of Vietnam (hereinafter referred to as “SBV”) is a ministerial agency of the Government of Vietnam and the Central Bank of the Socialist Republic of Vietnam; performs the state management of monetary and banking operations and foreign exchange (hereinafter referred to as “monetary and banking”); performs the functions of the Central Bank to issue money, acts as the bank of credit institutions and provides monetary services for the Government; performs the state management of public services under SBV’s jurisdiction.
According to that, foreign exchange falls under the monetary jurisdiction of the State Bank of Vietnam.
Are foreign exchange operations in current transactions in the territory of Vietnam under the jurisdiction of the State Bank of Vietnam?
Does the State Bank of Vietnam exercise management of foreign exchange operations in current transactions in the territory of Vietnam?
Pursuant to Clause 14, Article 2 of Decree No. 102/2022/ND-CP stipulating the tasks and powers of the State Bank of Vietnam as follows:
Tasks and powers
The SBV shall perform its tasks and powers as prescribed in the Law on the State Bank of Vietnam, the Government’s Decree No. 123/2016/ND-CP dated September 01, 2016 and the Government’s Decree No. 101/2020/ND-CP dated August 28, 2020, and the following specific tasks and powers:
…
14. Perform state management of foreign currencies, foreign exchange and gold trading operations:
a) Manage foreign exchange operations in current transactions, capital transactions, and use of foreign currencies in the territory of Vietnam; foreign currency trading, provision of forex services, and other transactions related to foreign currencies; foreign exchange operations conducted in border areas in accordance with regulations of law;
b) Manage the State's foreign exchange reserves in accordance with regulations of law; trade in foreign currencies in the domestic market to serve the implementation of national monetary policies; buy and sell foreign currencies using state budget, with international institutions and other sources; trade in foreign currencies in the international market and conduct other foreign exchange transactions in accordance with regulations of law;
c) Announce the exchange rates; issue decisions on exchange rate regimes and mechanisms for exchange rate management;
d) Issue and revoke written approvals of foreign currency trading and provision of forex services of credit institutions, foreign bank branches and other institutions in accordance with regulations of law;
dd) Manage foreign currencies in respect of foreign investments in Vietnam and Vietnam’s outward investments in accordance with regulations of law;
e) Manage gold trading in accordance with regulations of law;
g) Manage foreign borrowing and debt repayment by residents that get foreign conventional loans in accordance with regulations of law.
Provide guidelines on procedures and organize the certification of registration or registration of changes in foreign loans guaranteed by the Government in accordance with regulations of law;
h) Manage foreign lending and debt collection, guarantee for non-residents by credit institutions and business entities in accordance with regulations of law.
...
Thus, according to the above regulations, foreign exchange operations in current transactions in the territory of Vietnam are under the jurisdiction of the State Bank of Vietnam.
What revenues do foreign exchange operations of the State Bank of Vietnam include?
Pursuant to Article 28 of the Regulation promulgated together with Decision No. 2234/QD-NHNN in 2009 stipulating the revenues of the State Bank of Vietnam as follows:
Revenues of the State Bank of Vietnam
1. Revenue from deposit, credit and investment operations:
a) Collecting interest on deposit:
Interests receivable on deposits of the State Bank deposited at credit institutions; collect interest on foreign currency deposits of the State Bank deposited abroad.
b) Revenue from loan interest:
Interests receivable on loans in Vietnam dong and foreign currencies to domestic credit institutions, joint venture banks and foreign banks.
c) Earning profits from securities investment; Collect the difference between the selling price and the book value of the securities.
d) Other revenues from credit activities:
Revenues other than those mentioned above on credit operations of the State Bank.
2. Revenues from open market operations:
Revenues from open market operations through short-term trading of valuable papers conducted by the State Bank on the money market in order to implement national monetary policy.
3. Revenue from foreign exchange operations:
a) Revenue from gold trading:
Revenues from gold trading activities such as profits from gold trading, commissions from selling gold to foreign households.
b) Revenue from foreign currency trading:
Revenues from foreign currency trading activities such as profits from foreign currency trading and conversion on domestic and foreign markets (the difference between the selling price is larger than the buying price).
c) Other receipts from foreign exchange transactions:
Revenues other than those mentioned above from foreign exchange operations of the State Bank.
4. Revenue from banking services:
a) Collection of payment services:
Payment services of the State Bank to customers.
b) Collection of securities depository services.
c) Collection of information services includes revenues from information exchange services on currency, credit and other information services of the State Bank.
d) Other service charges:
Service charges other than those mentioned above.
...
Thus, revenues from foreign exchange operations of the State Bank of Vietnam include:
- Collecting and selling gold;
- Revenue from foreign currency trading;
- Other Revenue from foreign exchange transactions.
LawNet
