Vietnam: Reserve requirements for foreign currency deposits

17:04, 01/01/2020

On December 27, 2019, the Governor of the State Bank of Vietnam issued Circular No. 30/2019/TT-NHNN on reserve requirements to be satisfied by credit institutions and foreign bank branches.

thuc hien du tru bat buoc doi voi tien gui bang ngoai te, Thong tu 30/2019/TT-NHNN

According to Circular No. 30/2019/TT-NHNN of the State Bank of Vietnam (SBV), foreign currency deposits held by a credit institution which are used as the basis for calculating the required reserve to be satisfied by that credit institution are deposits in any foreign currency type, converted into USD and for which the required reserves must be kept in USD.

In case the average balance of reservable deposits in one of the following foreign currencies, EUR, JPY, GBP and CHF, at a credit institution accounts for more than 50% of its total reservable foreign currency deposits, reservable foreign currency deposits may be converted into this foreign currency and the required reserve may be made in the same currency.

Circular No. 30/2019/TT-NHNN stipulates foreign currencies may be converted into USD or into the foreign currency through VND according to the exchange rates from foreign currencies to VND used by the credit institution for making the balance sheet in accordance with SBV's regulations on chart of accounts of credit institutions in the month corresponding to the reserve computation period.

View relevant provisions at Circular No. 30/2019/TT-NHNN of the State Bank of Vietnam, effective from March 01, 2020.

Thu Ba

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