Vietnam’s regulations on control of foreign exchange reserves of the State

According to Clauses 22, 23, 24, 25 Article 1 of the Amending Ordinance on Foreign Exchange Control 2013 amending and supplementing Articles 32, 34, 35 and supplementing Article 35a at behind of Article 35 of the Ordinance on Foreign Exchange Control 2005 of Vietnam, regulations on control of foreign exchange reserves of the State are as follows:

- Composition of foreign exchange reserves of the State.

- Foreign currency cash and foreign currency deposited overseas.

- Securities and other valuable papers in foreign currency issued by the Government, by foreign organizations and international institutions.

- Special drawing rights and reserves at the International Monetary Fund.

- Gold managed by the State bank of Vietnam.

- Other types of foreign exchange of State.

2. Control of foreign exchange reserves of the State

- The State Bank of Vietnam shall exercise control of the foreign exchange reserves of the State in accordance with regulations of the Government in order to realize the national monetary policy, to ensure international payment capability and to preserve the foreign exchange reserves of the State.

- The Ministry of Finance shall inspect the management of the foreign exchange reserves of the State by the State Bank of Vietnam in accordance with regulations of the Government.

- The State Bank of Vietnam shall periodically or ad hoc report to the Prime Minister on management of foreign exchange reserves of the State.

- The Government shall report to the Standing Committee of the National Assembly on any changes in the status of the foreign exchange reserves of the State.

3. Foreign exchange belonging to the State budget

- The Ministry of Finance shall send all foreign currencies of State Treasuries to the State bank of Vietnam.

- The Prime Minister shall set the level of foreign currency which the Ministry of Finance is entitled to retain from State Budget revenue in order to satisfy the demand for regular payments of foreign exchange from the State Budget, the the Ministry of Finance shall buy the remaining foreign currencies to the foreign exchange reserves of State to concentrate at the State bank of Vietnam.

4. Use of foreign exchange reserves of  the State 

The Prime Minister shall decide use of foreign exchange reserves of  the State for irregular, urgent demand of the State; in case the use of  foreign exchange reserves of  the State causes changes of budget estimates, the use shall comply with regulations of Law on the State budget.

View more: The Amending Ordinance on Foreign Exchange Control 2013 of Vietnam takes effect from January 01, 2014.

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