03 Principles of Foreign Exchange Management for Foreign Currency Capital of Political Organizations

15:57, 10/07/2024

On December 31, 2019, the Governor of the State Bank of Vietnam issued Circular 34/2019/TT-NHNN guiding the management of foreign exchange for foreign currency funds of microfinance programs and projects of political organizations, socio-political organizations, and non-governmental organizations.

At Article 3 of Circular 34/2019/TT-NHNN stipulates the foreign exchange management for foreign currency funding sources of microfinance programs and projects of political organizations, socio-political organizations, and non-governmental organizations must fully comply with the following 03 principles:

Management principles for foreign currency funds of political organizations, Circular 34/2019/TT-NHNN

Illustrative image (source: internet)

- Political organizations, socio-political organizations, and non-governmental organizations are only allowed to mobilize funds in foreign currency in the form of receiving grants and non-refundable aid from non-resident organizations and individuals to carry out microfinance programs and projects.

- Political organizations, socio-political organizations, and non-governmental organizations are responsible for complying with specialized legal regulations on the receipt and use of grant funds and non-refundable aid from non-resident organizations and individuals; regulations on foreign exchange management for foreign currency funding sources stipulated in this Circular and related laws when receiving and using foreign currency grants and aid to implement microfinance programs and projects.

- Political organizations, socio-political organizations, and non-governmental organizations are not allowed to mobilize funds in foreign currency to implement microfinance programs and projects outside of the form of receiving grants and non-refundable aid from non-resident organizations and individuals to implement microfinance programs and projects.

See the full text of the regulations at Circular 34/2019/TT-NHNN which takes effect from February 14, 2020.

Thu Ba

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