VietnameseCircular No. 26/2009/TT-NHNN dated December 30, 2009 of the State Bank providing for the sale and purchase of foreign currencies by a number of state groups and corporations
ATTRIBUTE
Circular No. 26/2009/TT-NHNN dated December 30, 2009 of the State Bank providing for the sale and purchase of foreign currencies by a number of state groups and corporations
| Issuing body: | State Bank of Vietnam | Effective date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Official number: | 26/2009/TT-NHNN | Signer: | Nguyen Van Binh |
| Type: | Circular | Expiry date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Issuing date: | 30/12/2009 | Effect status: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Fields: | Enterprise , Finance - Banking |
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THE STATE BANK OF VIETNAM ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------- |
No. 26/2009/TT-NHNN | Hanoi, December 18, 2009 |
CIRCULAR
PROVIDING FOR THE SALE AND PURCHASE OF FOREIGN CURRENCIES BY A NUMBER OF STATE GROUPS AND CORPORATIONS
THE STATE BANK OF VIETNAM
Pursuant to Point 3 of the Prime Minister's Document No. 2578/TTg-KTTH of December 23, 2009, providing for the sale of foreign currencies by a number of state groups and corporations;
The State Bank of Vietnam (SBV) provides the following guidance:
Section I
GENERAL PROVISIONS
1. Scope of regulation and subjects of application
This Circular provides for the performance of the obligation to sell foreign currencies to licensed credit institutions by state groups and corporations and their right to re-buy foreign currencies within the sold foreign-currency amount from licensed credit institutions to satisfy their lawful needs for foreign currencies.
The sale and purchase of foreign currencies prescribed in this Circular apply to the following state groups and corporations (including their non-credit institution member enterprises in which the state capital accounts for over 50% as prescribed in the 2005 Enterprise Law):
a/ Vietnam Oil and Gas Group
b/ Vietnam National Coal-Mineral Group
c/ Vietnam National Chemical Group (Vietnam Chemical Corporation)
d/ Southern Airports Corporation
e/ Vietnam Southern Food Corporation
f/ Vietnam Northern Food Corporation
g/ Lilama Corporation.
2. Interpretation of terms
In this Circular, the terms below are construed as follows:
2.1. Organization means a state group or corporation (including its member enterprises in which the state capital accounts for more than 50% as prescribed in the 2005 Enterprise Law).
2.2. Licensed credit institution means a credit institution operating in Vietnam and licensed to conduct foreign exchange activities under law.
2.3. Obligation to sell foreign currencies means that an organization is obliged to sell to a licensed credit institution foreign currencies collected from its current sources and credit balance on its deposit accounts opened at the institution.
2.4. Right to buy foreign currencies mean that an organization is entitled to buy foreign currencies from a licensed credit institution for current payment and other lawful transactions on the basis of producing relevant valid dossiers and documents.
2.5. Current revenue sources mean an organization's revenues from current transactions prescribed in the Government's Decree No. 160/ 2006/ND-CP of December 28, 2006, detailing the Ordinance on Foreign Exchange.
2.6. Credit balance on a foreign-currency deposit account of an organization includes the credit balance on demand deposits and the credit balance on time deposits of an organization at a licensed credit institution.
2.7. Managed account means a foreign-currency account opened by a licensed credit institution for each organization so as to buy foreign currencies from credit deposits of such organization under this Circular.
2.8. Foreign currencies means freely convertible foreign currencies.
3. Scope of foreign currency sale and purchase:
3.1. Sources of foreign currencies, to be sold by an organization to a licensed credit institution:
a/ Foreign currencies on time deposit accounts of an organizations at a licensed credit institution as of December 31, 2009.
b/ Foreign currencies on demand deposit accounts of an organization at a licensed credit institution as of December 31. 2009.
c/ Foreign currencies collected from current transactions from January 1. 2010.
3.2. Cases in which an organization is entitled to buy foreign currencies from a licensed credit institution:
When its demand for foreign currency for lawful purposes (making payments paying collaterals or deposits) in a month is larger than its existing credit balance on foreign currency deposit accounts and foreign currency-re venues in that month, an organization is permitted to buy the deficit amount for use under this Circular.
4. Principles on the sale and purchase of foreign currencies:
4.1. Organizations shall sell foreign currencies in the form of time deposits and demand deposits as of December 31, 2009, to licensed credit institutions with which they open foreign-currency deposit accounts.
4.2. Organizations shall buy foreign currencies from licensed credit institutions to
which they have sold foreign currencies. Licensed credit institutions shall monitor and control the sale and purchase of foreign currencies on the principle that the foreign currency amount an organization is permitted to buy does not exceed the foreign currency amount that it has sold to licensed credit institutions under this Circular.
which they have sold foreign currencies. Licensed credit institutions shall monitor and control the sale and purchase of foreign currencies on the principle that the foreign currency amount an organization is permitted to buy does not exceed the foreign currency amount that it has sold to licensed credit institutions under this Circular.
4.3. After buying the whole amount of foreign currencft?4 it has sold to licensed credit
institution under this Circular, an organization that wishes buy more foreign currencies shall
conduct the sale and purchase of foreign currencies between it and licensed credit institutions on the basis of mutual agreement under relevant current regulations on foreign exchange* "management.
institution under this Circular, an organization that wishes buy more foreign currencies shall
conduct the sale and purchase of foreign currencies between it and licensed credit institutions on the basis of mutual agreement under relevant current regulations on foreign exchange* "management.
4.4. Licensed credit institutions shall balance foreign currency sources for the sale and purchase of foreign currency to/from organizations under this Circular. They shall ensure compliance with the SBV’s regulations on maintenance of foreign exchange status at the time of sale-purchase of foreign currencies to/from organizations. If the foreign exchange status of a licensed credit institution exceeds the prescribed level as a result of the purchase of foreign currencies from organizations, the institution shall immediately sell the excessive foreign-currency amount to the SBV at the foreign-currency buying rate announced by the SBV in the inter-bank market at the time of transaction. The SBV shall re-sell this foreign currency amount to the licensed credit institution upon request at the selling rate announced by the SBV in the inter-bank market at the time of transaction for sale to organizations.
4.5. In case a licensed credit institution does not have enough Vietnam dong amounts to buy foreign currencies from organizations, it may sell the foreign currency amount which it is unable to buy to the SBV at the foreign-currency buying rate announced by the SBV in the inter-bank market at the time of transaction. The SBV shall re-sell this foreign currency amount to the licensed credit institution at the foreign currency selling rate announced by the SBV in the interbank market at the time of transaction for sale to organizations.
4.6. The exchange rates applicable to the sale and purchase of foreign currencies between licensed credit institutions and organizations comply with the SBV's current regulations.
4.7. For foreign currency amounts which licensed credit institutions buy from organizations and then sell to the SBV under Points 4.4 and 4.5, Section I of this Circular, these institutions may apply the rate applied in selling foreign currencies to the SBV to make payment to organizations. Similarly, for foreign currency amounts which they buy from the SBV for resale to organizations upon request, licensed credit institutions may sell these foreign currency amounts to organizations at the rate at which they have bought foreign currencies from the SBV.
Section II
OBLIGATION TO SELL FOREIGN CURRENCIES ON DEPOSIT ACCOUNT CREDIT BALANCE
5. Foreign currency amounts to be sold:
5.1. For the credit balance on time deposit accounts of organizations at licensed credit institutions as of December 31, 2009 (except amounts paid as collateral, deposit or guarantee for debt obligations in the future): Organizations shall immediately sell 30% of the credit balance on foreign-currency time deposit accounts as of December 31, 2009. Organizations shall sell the remaining foreign currency amount to licensed credit institutions within the first 2 months of 2010.
5.2. For the credit balance on demand deposit accounts of organizations at licensed credit institutions as of December 31, 2001: Organizations may retain the foreign currency amount which is needed to make payment and the foreign currency amount which they currently retain for the purposes of collateral, deposit or guarantee for debt obligations in the future. They shall immediately sell the remaining foreign currency amount to licensed credit institutions.
6. Procedures for sale of foreign currencies on deposit account credit balance under Point 5, Section II of this Circular:
6.1. For the credit balance on time deposit accounts as of December 31, 2009:
a/ Licensed credit institutions shall accurately determine and freeze the credit balance on foreign-currency time deposit accounts of organizations at their institutions at the time of December 31, 2009.
b/ Licensed credit institutions shall transfer 30% of the foreign currency amount on organizations' foreign-currency time deposit accounts to a managed account. At the same time, they shall immediately notify organizations to sell the foreign currency amount already transferred to the managed account to the institutions no later than January 6, 2010.
c/ After January 6, 2010, if organizations fail to sell the foreign currency amount already transferred to the managed account to licensed credit institutions, the latter may immediately buy this foreign currency amount and, at the same time, record credit in organizations* Vietnam-dong accounts opened at the institutions. In case organizations have not yet opened Vietnam-dong accounts at licensed credit institutions, the latter may open Vietnam-dong accounts for organizations in order to promptly buy their foreign currencies and request organizations to complete procedures for opening Vietnam-dong accounts according to the institutions' regulations.
d/ No later than March 1,2010, licensed credit institutions shall reach agreement with organizations on the plan on purchase of the remaining foreign currency amounts of organizations and take the initiative in implementing these plans under this Circular.
e/ For the credit balance on time deposit accounts, at the time of purchase, licensed credit institutions shall pay interests on the foreign-currency amounts to be sold by organizations at the interest rate equal to the interest rate committed for the deposit term and calculate interest amounts based on the actual number of days the foreign currency amounts are deposited at licensed credit institutions. Licensed credit institutions shall pay these interest amounts in foreign currencies to organizations, which constitute foreign-currency revenues of organizations in the month and shall be calculated according to Section III of this Circular.
6.2. For the credit balance of demand foreign-currency deposit accounts as of December 31, 2009:
a/ Within 5 working days after December 31, 2009, organizations shall produce to licensed credit institutions dossiers and documents to prove the reasonability of the foreign currency amount which they need to retain for making payment in January 2010 and the foreign-currency amount which they currently keep for collateral, deposit or guarantee purpose. Licensed credit institutions shall base themselves on these dossiers and documents to determine the accurate foreign (Currency amount which organizations need to retain on their demand deposit accounts on December 31, 2009.
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