The exchange rate announced by the State Treasury of Vietnam: What is the exchange rate of US dollar (USD) to Vietnam dong?
- What is foreign currency? What is the principle of determining the original currency position in Vietnam?
- The exchange rate announced by the State Treasury of Vietnam: What is the exchange rate of US dollar (USD) to Vietnam dong?
- What is the notice board of foreign currency exchange rates in Vietnam?
- How long is the term of a foreign currency transaction in Vietnam?
- What is the basic information of an agreement on foreign currency transactions in Vietnam?
What is foreign currency? What is the principle of determining the original currency position in Vietnam?
Pursuant to Clause 1, Article 2 of Circular 07/2012/TT-NHNN defines foreign currency as follows:
Interpretation
In this Circular, following terms shall be construed as follows:
1. Foreign currency shall mean the currency of another country, territory or the official currency of EU members or other composite currencies used in international and regional payment.
2. The original currency position of a foreign currency shall mean the difference between the Total Assets and Total Liabilities in this foreign currency, including respective off- balance commitments.
3. Exchange rate of foreign currency position shall be applied in line with following provisions:
a. Exchange rate between Vietnamese dong and US dollar: shall be the inter-bank average exchange rate as announced by the State Bank at the reporting date.
b. Exchange rate between Vietnamese dong and other foreign currencies: shall be the spot selling rate by transfer of credit institutions, foreign bank's branches at the end of the reporting date.
4. Foreign currency position of a credit institution, foreign bank's branch shall mean the original currency position of that foreign currency which is converted into Vietnamese dong at the position translation rate.
5. Total positive foreign currency position shall mean the total position of foreign currencies with positive position.
6. Total negative foreign currency position shall mean the total position of foreign currencies with negative position.
Thus, according to regulations, foreign currency is the currency of another country, territory or the common currency of Europe and other common currency used in international and regional payments.
Pursuant to Article 3 of Circular 07/2012/TT-NHNN stipulating the principle of calculating foreign currency position including:
- Foreign currency position of a credit institution, foreign bank's branch shall be determined at the end of a working day.
- Original currency position of a foreign currency shall be calculated based on the balance of related accounts as provided for in the Appendix of this Circular.
- Original currency position of each foreign currency shall be converted into Vietnamese dong at the position translation rate.
- To add up the positive foreign currency positions for calculating the total positive foreign currency position; To add up the negative foreign currency positions for calculating the total negative foreign currency position.
The exchange rate announced by the State Treasury of Vietnam: What is the exchange rate of US dollar (USD) to Vietnam dong?
Pursuant to Notice 5543/TB-KBNN in 2022 issued by the State Treasury as follows:
The State Treasury announces the exchange rate for accounting accounting and foreign currency revenue and expenditure report in November 2022, uniformly applied nationwide as follows:
1. The accounting exchange rate between Vietnam dong and US dollar (USD) in November 2022 is 1 USD = 23,559 dong.
2. The accounting exchange rate between Vietnam dong and other foreign currencies in November 2022 shall be made according to the appendix attached to this official letter.
3. The above accounting exchange rate is applied in the following transactions:
- Conversion and accounting of state budget revenues and expenditures in foreign currencies.
- Conversion and accounting of the State Treasury.
Thus, according to the above regulations, the accounting exchange rate between Vietnam dong and US dollar (USD) in November 2022 is 1 USD = 23,559 dong.
The exchange rate announced by the State Treasury of Vietnam: What is the exchange rate of US dollar (USD) to Vietnam dong? (Image from the Internet)
What is the notice board of foreign currency exchange rates in Vietnam?
Pursuant to the Appendix of Notice of foreign currency accounting rates in November 2022, issued according to Notice 5543/TB-KBNN in 2022 issued by the State Treasury, providing for the notice of foreign currency accounting rates in November 2022 as follows:
See details of the notice of foreign currency accounting rates in November 2022: Click here.
How long is the term of a foreign currency transaction in Vietnam?
Pursuant to Article 6 of Circular 02/2021/TT-NHNN stipulating the term of foreign currency transactions as follows:
- The term of the forward transaction, the future transaction in the swap transaction, the option transaction shall be agreed upon by the parties.
- The term of forward transactions, forward transactions in swaps between Vietnam Dong and foreign currencies is up to 365 (three hundred and sixty five) days from the transaction date.
What is the basic information of an agreement on foreign currency transactions in Vietnam?
Pursuant to Clause 1, Article 10 of Circular 02/2021/TT-NHNN stipulating that a written agreement on foreign currency transaction between an authorized credit institution and its partner must contain the following basic information:
- Names of the parties;
- Transaction date;
- Currencies of the transaction;
- Amount of foreign currencies;
- Exchange rate;
- Payment date;
- Premium (for FX option transactions);
- Expiration date (for FX option transactions).
LawNet