What is the foreign exchange rate for May 2024 in Vietnam? How to calculate accounting exchange rate between VND and foreign currencies in Vietnam?
What is the foreign exchange rate for May 2024 in Vietnam?
On April 26, 2024, the State Treasury issued Notice 2114/TB-KBNN for the year 2024 regarding the foreign currency accounting exchange rate for May 2024.
The foreign currency exchange rate for May 2024 is stipulated as follows:
- The accounting exchange rate between the Vietnamese Dong and the US Dollar (USD) for May 2024 is 1 USD = 24,107 VND.
- The above accounting exchange rate is applied in the following transactions:
+ Conversion and accounting of state budget revenues and expenditures in foreign currency.
+ Conversion and accounting of the State Treasury.
Refer to the detailed foreign currency exchange rate for May 2024 here.
What is the accounting exchange rate between the Vietnamese Dong and other foreign currencies?
In Clause 1, Article 8 of Circular 328/2016/TT-BTC (amended by point b of Clause 8, Article 1 of Circular 72/2021/TT-BTC), the foreign exchange rate is regulated as follows:
State budget revenues in foreign currency
- Management principles:
...
c) The foreign currency fund of the state budget is used to pay and disburse state budget expenditures in foreign currency. The remaining foreign currency can be sold by the Central Treasury to the State Bank of Vietnam as per regulations. At the end of the year, during the finalization adjustment period, the Central Treasury compiles the exchange rate differences incurred during the year and collaborates with the State Budget Department - Ministry of Finance for processing.
d) The monthly foreign currency accounting exchange rate is uniformly applied nationwide for converting and accounting state budget revenues and expenditures in foreign currency; converting and accounting by the State Treasury.
dd) The Minister of Finance authorizes the General Director of the State Treasury to determine and announce the monthly foreign currency accounting exchange rate. Specifically:
- The accounting exchange rate between the Vietnamese Dong and the US Dollar is calculated as the average of the central rates announced by the State Bank of Vietnam within the 30 days before the announcement date.
- The accounting exchange rate between the Vietnamese Dong and other foreign currencies is calculated as the average of the cross-rates between Vietnamese Dong and other foreign currencies announced by the State Bank of Vietnam within the 30 days before the announcement date. For currencies not announced by the State Bank of Vietnam, the exchange rate is calculated via the US Dollar according to the statistical conversion rate between the US Dollar and other currencies provided by the Vietnam Joint Stock Commercial Bank for Foreign Trade on the last working day of the month.
...
Thus, the accounting exchange rate between the Vietnamese Dong and other foreign currencies is calculated as follows:
- The accounting exchange rate between the Vietnamese Dong and the US Dollar is calculated as the average of the central rates.
- The accounting exchange rate between the Vietnamese Dong and other foreign currencies is calculated as the average of the cross-rates between the Vietnamese Dong and other foreign currencies.
For currencies not announced by the State Bank of Vietnam, the exchange rate is calculated via the US Dollar according to the statistical conversion rate between the US Dollar and other currencies provided by the Vietnam Joint Stock Commercial Bank for Foreign Trade on the last working day of the month.
What is the foreign exchange rate for May 2024 in Vietnam? How to calculate accounting exchange rate between VND and foreign currencies in Vietnam? (Image from the Internet)
What are methods of foreign exchange transactions in Vietnam?
Article 7 of Circular 02/2021/TT-NHNN regulates transaction methods:
Transaction Methods
Foreign exchange transactions are conducted through direct transactions or transactions via communication means, including telephone and electronic means.
Foreign exchange transactions conducted via electronic means and telephone are subject to mutual agreement and accountability by both parties, ensuring security, safety, and protection of data messages and information confidentiality in accordance with the law. Data messages hold the same value as written documents if compliant with Article 12 of the Electronic Transactions Law. Transactions conducted via electronic means must adhere to the Electronic Transactions Law and related guiding documents.
For transactions via telephone, licensed credit institutions must stipulate and notify partners of the authorized telephone numbers for transactions. Telephones must have recording capabilities and ensure access to agreed transaction contents with partners for the purposes of transaction confirmation, internal control of the credit institution, and dispute resolution (if any).
Thus, there are 02 methods of foreign exchange transactions:
- Direct transactions.
- Transactions via communication means, including telephone and electronic means.
Sincerely!
