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

Procedures for purchase and sale of foreign currencies of by state economic groups and corporations in Vietnam (illustrative image)

As per Circular 13/2011/TT-NHNN guiding the process for selling foreign currencies concerning deposit balances of economic groups and state-owned corporations as follows:

- From July 1, 2011 to July 7, 2011, the organization reports a summary of the lawful foreign currencies usage needs of the organization in July 2011 to balance retaining foreign currencies from time deposits and demand deposits that the organization has at licensed credit institutions as of July 1, 2011, sufficient to meet usage needs. The remaining amount, the organization sells to the licensed credit institution where the organization has a foreign currencies deposit account.

- Licensed credit institutions are responsible for accurately determining the foreign currencies balance on the term and non-term foreign currencies deposit accounts of the organizations at licensed credit institutions as of July 1, 2011.

- The licensed credit institution may require the organization to report (with supporting documents) the needs for lawful foreign currencies usage as stipulated in Article 7, Clause 1 of this Circular to retain the necessary foreign currencies on the organization's foreign currencies deposit account to serve lawful usage needs. The remaining foreign currencies, the licensed credit institution is licensed to purchase from the organization.

- For foreign currencies purchased from the term deposit balance, at the time of purchase, the licensed credit institution shall pay interest on the foreign currencies the organization has deposited at the agreed interest rate according to the term and based on the actual number of days the organization has deposited foreign currencies at the licensed credit institution. This interest amount the licensed credit institution is allowed to pay to the organization in foreign currencies, which is considered foreign currencies income for the organization in July 2011 and is considered in balancing monthly usage needs of the organization.

- For foreign currencies purchased from the non-term deposit balance, the licensed credit institution is permitted to pay interest in foreign currencies to the organization at the non-term interest rate based on the actual number of days the organization has deposited foreign currencies at the licensed credit institution. This interest amount is considered foreign currencies income for the organization in July 2011 and is considered in balancing monthly usage needs of the organization.

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

Thuy Tram

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