Recently, the State Bank of Vietnam issued Circular No. 20/2011/TT-NHNN providing for the purchase, sale of foreign currencies in cash between individuals and authorized credit institutions.
According to Circular No. 20/2011/TT-NHNN of the State Bank of Vietnam, responsibilities of credit institutions authorized to engage in foreign exchange activity (hereinafter referred to as authorized credit institutions) include:
- To carry out the purchase, sale of foreign currencies in cash with individuals to satisfy the purposes as stipulated in this Circular after giving notice to the State Bank.
- To publicly post, on their website, the buying, selling rates of foreign currencies with individuals in places of purchasing, selling foreign currencies in cash and being obliged to purchase, sell foreign currencies in cash in accordance with provisions of applicable laws on exchange rate.
- To issue internal process on the purchase, sale of foreign currencies in cash with individuals, specifying procedures, application files, related documents to prove the demand for using, spending foreign currencies in cash in foreign country of individuals to ensure the implementation of transaction in right purpose and in line with provisions in this Circular and other provisions on foreign exchange control.
- To comply with the regime on documents, books related to activity of purchasing, selling foreign currencies in cash with individuals in accordance with provisions of applicable laws.
- To build guiding regulations inside authorized credit institutions to manage, supervise, ensure security in delivery, receipt, preservation and transport of foreign currencies in cash under applicable provisions of State Bank.
- To facilitate and encourage individuals to use non-cash payment means in order to satisfy legal spending demand in foreign countries.
Moreover, monthly, on the 10th of next month at the latest, authorized credit institutions shall make report according to following provisions:
- To make report to the State Bank branch in province, centrally-affiliated in their local area on status of purchase, sale of foreign currencies in cash arising in the month at that local area under the form in Appendix 3 issued in conjunction with this Circular.
- To summarize and report to the State Bank of Vietnam (Foreign Exchange Control Department) on status of purchase, sale of foreign currencies in cash of the entire system arising in the month under the form in Appendix 3 issued in conjunction with this Circular.
More details can be found in Circular No. 20/2011/TT-NHNN of the State Bank of Vietnam, which takes effect from October 15, 2011.
Thuy Tram
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