Principles of purchase and sale of foreign currencies by state economic groups and corporations in Vietnam

Principles of purchase and sale of foreign currencies by state economic groups and corporations in Vietnam (Illustrative image)

Article 5 of Circular 13/2011/TT-NHNN stipulates the following principles for buying and selling foreign currencies by state economic groups and corporations in Vietnam:

1. Monthly, the Organization is responsible for balancing its foreign currency revenues and legitimate foreign currency usage needs. The remaining foreign currency must be sold by the Organization to authorized credit institutions.

2. The Organization must not use a single foreign currency requirement to instruct multiple authorized credit institutions as a basis for balancing foreign currency income and expenditure within the month.

3. When the legitimate foreign currency usage demand in the month exceeds the existing balance in the Organization's foreign currency deposit account and the foreign currency revenue in the month, within the total foreign currency amount sold to authorized credit institutions, the Organization has the right to repurchase the outstanding foreign currency to serve its legitimate usage needs.

4. The Organization that sells foreign currency to an authorized credit institution must execute the repurchase of foreign currency from that same credit institution. The authorized credit institution is responsible for monitoring and ensuring the principle that the Organization can repurchase up to the amount of foreign currency that it has sold to the authorized credit institution according to the provisions of Circular 13/2011/TT-NHNN.

5. The Organization is entitled to repurchase the sold foreign currency from the authorized credit institution for a period of 01 year from the month the foreign currency was sold to the authorized credit institution.

6. In cases where the Organization has repurchased the entire amount of foreign currency it sold to the authorized credit institution as stipulated in this Circular, and still needs more foreign currency, the buying and selling of foreign currency between the Organization and the authorized credit institution shall be based on mutual agreement, complying with the current regulations on foreign exchange management.

7. The authorized credit institution is responsible for self-balancing foreign currency to conduct foreign currency transactions with the Organizations as stipulated in this Circular. The authorized credit institution must ensure compliance with the State Bank's regulations on maintaining foreign exchange status at the time of conducting foreign currency transactions with the Organizations.

8. The exchange rates for foreign currency transactions between the authorized credit institution and the Organization shall adhere to the current regulations of the State Bank.

More details can be found in Circular 13/2011/TT-NHNN, effective from July 1, 2011.

Thuy Tram

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