New regulation of Vietnam on currency sale deadline of currency exchange agents of bordering countries

New regulation of Vietnam on currency sale deadline of currency exchange agents of bordering countries

According to the Circular, a currency exchange agent of a bordering country shall sell all of the purchased currency in cash of the bordering country (except for the retainable cash balance) to the authorizing credit institution at the end of every working day.

If the location of the currency exchange agent of the bordering country is far from and difficult to travel to the authorizing credit institution, the authorizing credit institution shall, based on actual situations, make agreements with the economic organization on the sale deadline of the purchased cash, but it shall not exceed 7 working days.

Retainable cash balance of currency exchange agents of bordering countries

A currency exchange agent of a bordering country may retain a cash balance of the currency of that bordering country prescribed in an agreement between the authorizing credit institution with the economic organization, but it shall not exceed 40.000.000 VND in equivalent value to be used as costs for exchange operations of the bordering country.  

If the currency exchange agent wishes to increase the retainable cash balance (including cases exceeding the maximum retainable cash balance), the economic organization shall perform a procedure for adjusting the certificate of registration for currency exchange agents of bordering countries as prescribed by laws.

Operational conditions for currency exchange agents of bordering countries

Operational conditions for currency exchange agents of bordering countries are as follows:

- Currency exchange agents of bordering countries may only operate by using cash in Vietnam Dong to purchase the currency of a bordering country from an individual, excluding cases prescribed in Clause 2 Article 3 of Circular No. 04/2023/TT-NHNN.

- Currency exchange agents of bordering countries located at exit-pending areas of international border checkpoints and main border checkpoints may sell the currencies of bordering countries by using cash to exchange for Vietnam Dong for individuals as prescribed in Article 4 of Circular No. 04/2023/TT-NHNN.

- Economic organizations may form agreements with authorizing credit institutions on the placement of currency exchange agents of bordering countries at one or many locations in borderland areas, border economic zones where they are headquartered, or have branches in the contracts for currency exchange agents of bordering countries.

See more details in Circular No. 04/2023/TT-NHNN of the State Bank of Vietnam, effective as of August 1, 2023.

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