New regulations on the use of valuable papers deposited at the State Bank of Vietnam

Van Trong

17:42, 05/12/2022

Governor of the State Bank of Vietnam issued Circular 16/2022/TT-NHNN dated 30/11/2022 on depository and use of valuable papers at the State Bank of Vietnam.

According to Vietnam's Circular 16/2022/TT-NHNN, valuable papers used in money market operations include:

(1) Open market operations;

(2) Refinancing operations:

- Loans to credit institutions and foreign bank branches secured by the pledge of valuable papers of the State Bank;

- Discounting valuable State Bank papers for credit institutions and foreign bank branches

- Other types of refinancing permitted by State Bank regulations;

(3) Pledge valuable papers to establish an overdraft limit and overnight lending in interbank electronic payments;

(4) Pledge, deposit valuable papers to establish the net debt limit in an interbank electronic payment;

Currently, Vietnam's Circular 04/2016/TT-NHNN only regulates the deposit of valuable papers to establish the net debt limit in interbank electronic payments.

(5) Pledge and deposit valuable papers in order to establish a centralized payment limit.

(6) Pledge and deposit valuable papers to establish an electronic clearing limit through the Electronic Clearing System;

Currently, valuable papers are held in escrow to establish the net debt limit in interbank electronic payment systems, with participants in the e-payment system.

(7) Pledge, deposit valuable papers, and perform other operations as decided by the Governor of the State Bank from time to time. (Additional content)

Vietnam's Circular 16/2022/TT-NHNN takes effect on January 17, 2023, and replaces Vietnam's Circular 04/2016/TT-NHNN.

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