How much is 1 USD equal to VND? What is the determination of the foreign currency buying and selling rates in Vietnam?
How much is 1 USD equal to VND?
In Announcement 338/TB-NHNN in 2023, the official exchange rate of VND to USD, applicable to November 4, 2023, is announced as follows:
Official Exchange Rate | Exchange Rate |
US$1 = | 23.951 VND |
In writing | Twenty-three thousand nine hundred and fifty-one VND |
Document number | 380/TB-NHNN |
Date of issue | 08/12/2023 |
What is the determination of the foreign currency buying and selling rates in Vietnam?
Under Article 5 of Circular 02/2021/TT-NHNN as follows:
Currencies and exchange rates
1. Each authorized credit institution shall stipulate the foreign currencies to be traded.
2. The spot exchange rate between VND and USD of an FX spot or FX spot within a currency swap shall be determined based on the official rate announced by the State Bank on the transaction date and within the margin decided by the State Bank.
3. The forward rate between VND and USD in an FX forward or an FX forward within a currency swap shall be agreed upon by the parties thereto but not exceed the exchange rate determined based on:
a) The spot exchange rate on the transaction date;
b) The difference between two existing interest rates which are the refinancing interest rate announced by the State Bank and Federal Funds Target Rate. If the Federal Funds Target Rate is within the margin, the lowest interest rate in the margin shall apply.
c) Term of the transaction.
4. Exchange rates between VND and other currencies other than USD and between foreign currencies with each other in foreign currency transactions shall be agreed upon by the parties thereto.
5. Authorized credit institutions must publish spot exchange rates between VND and other currencies when making transactions with clients at their foreign currency transaction locations and on their official websites (if any). Authorized credit institutions shall make transactions with their clients at published exchange rates, unless otherwise agreed upon by both parties.
According to the above:
(1) The spot exchange rate (spot foreign currency buying and selling rate) between VND and USD of an FX spot or FX spot within a currency swap shall be determined based on the official rate announced by the State Bank on the transaction date and within the margin decided by the State Bank.
At the same time, Article 2 of Decision 2730/QD-NHNN in 2015 also stipulates the official exchange rate between VND and USD as follows:
Article 2.
1. The official exchange rate between VND and USD is determined with reference to any fluctuation in the weighted average rate occurring on the interbank or international forex market for several currencies of countries that have established major commercial, lending or borrowing, or debt repayment, or investment relationship with Vietnam, macroeconomic and currency balances, and in line with to monetary policy goals.
2. “Official exchange rate between Vietnam dong and USD" in this Decision is “the interbank average exchange rate between Vietnam dong and USD”.
Accordingly, the official exchange rate between VND and USD will be regularly announced on the website of the State Bank of Vietnam.
In addition, in Article 1 of Decision 1747/QD-NHNN in 2022, there are regulations on the spot exchange rate between VND and foreign currencies of permitted credit institutions, accordingly:
Banks, non-bank credit institutions, and foreign bank branches permitted to conduct business and provide foreign exchange services (hereinafter referred to as permitted credit institutions) shall fix the spot exchange rates between VND and foreign currencies according to the following principles:
1. For USD: It must not exceed a margin of ± 5% (five percent) above the official exchange rate announced by the State Bank of Vietnam applicable to that trading day.
2. For other foreign currencies: It shall be determined by an authorized credit institution.
3. The difference between the buying rate and the selling rate shall be determined by an authorized credit institution.
(2) The forward rate between VND and USD in an FX forward or an FX forward within a currency swap shall be agreed upon by the parties thereto but not exceed the exchange rate determined based on:
- The spot exchange rate on the transaction date;
- The difference between two existing interest rates which are the refinancing interest rate announced by the State Bank and the Federal Funds Target Rate. If the Federal Funds Target Rate is within the margin, the lowest interest rate in the margin shall apply.
+ Term of the transaction.
(3) Exchange rates between VND and other currencies other than USD and between foreign currencies with each other in foreign currency transactions shall be agreed upon by the parties thereto.
Are passengers who carry cash in foreign currencies when exiting or entering Vietnam to make customs declarations?
Under Article 4 of Circular 120/2015/TT-BTC on forms, printing, issuance, management, and use of customs declarations for incoming/outgoing passengers (amended and supplemented in Clauses 1 and 2, Article 1 of Circular 52/2017/TT-BTC) as follows:
Declaration
1. Passengers are requested to declare in the following cases:
a) Having unaccompanied baggage;
b) Having temporarily imported and re-exported goods or vice versa;
c) Having dutiable goods: carrying over 1.5 liters of liquor with concentration of alcohol of above 20 degrees or over 2 liters of liquor with concentration of alcohol of below 20 degrees or over 3 liters of alcoholic drinks, beer; over 200 cigarettes; over 20 cigars; over 250 grams of raw tobacco; and other items with value of over VND 10,000,000;
d) Carrying cash in foreign currencies, cash in Vietnamese currency, precious metal, gemstones, negotiable instruments, gold subject to customs declaration in accordance with Circular No. 35/2013/TT-NHNN dated December 31, 2013 and Circular No. 11/2014/TT-NHNN dated March 28, 2014 of the State bank of Vietnam, in particular:
d.1. Carrying over USD 5,000 or foreign equivalents or over VND 15,000,000;
…
dd) Incoming passenger requiring customs authentication when bringing foreign currency with value of USD 5,000 or less (or other foreign currencies of equivalent value).
2. Before following customs procedures with customs authority at a checkpoint (for each time of entry or exit), each passenger is required insert adequate information in the pages 2 and 3 according to the guidelines in page 4 of the customs declaration form and Appendix No. 04 issued herewith. The passenger shall take legal responsibility for their declaration. The form must be declared clearly with no erasure, correction; no use of pencil or red-colored pen.
Thus, passengers who carry cash in foreign currencies when exiting or entering Vietnam are required to make customs declaration.
LawNet