Decision No.622/QD-NHNN dated March 23, 2009 of the State Bank of Vietnam on the issuance of some Provisions relating to foreign currency transaction of credit institutions authorised to engage in foreign exchange activity

DECISION

ON THE ISSUANCE OF SOME PROVISIONS RELATING TO FOREIGN CURRENCY TRANSACTION OF CREDIT INSTITUTIONS AUTHORISED TO ENGAGE IN FOREIGN EXCHANGE ACTIVITY

THE GOVERNOR OF THE STATE BANK

- Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated 12/12/1997; the Law on the amendment, supplement of several Articles of the Law on the State Bank of Vietnam No. 10/2003/QH11 dated 17/6/2003;

- Pursuant to the Law on Credit Institutions No. 02/1997/QH10 dated 12/12/1997; the Law on amendment, supplement of several Articles of the Law on Credit Institutions No. 20/2004/QH11 dated 15/6/2004;

- Pursuant to the Decree No. 96/2008/ND-CP dated 26 August 2008 of the Government providing for the functions, duties, authorities and organizational structure of the State Bank of Vietnam;

- Upon the proposal of the Director of the Foreign Exchange Control Department.

DECIDES:

Article 1. General Directors (Directors) of credit institutions authorised to engage in foreign exchange activity shall be permitted to determine the buying and selling rate for spot transaction between Vietnamese Dong and foreign currencies under the following principles:

1. For US$: the maximum exchange rate shall not exceed +5% (five per cent) of the average exchange rate in the inter-bank foreign currency market applicable to the transaction date, announced by the State Bank.

2. For other foreign currencies: The exchange rate shall be determined by the General Directors (Directors) of credit institutions authorised to engage in foreign exchange activity.

3. The General Directors (Directors) of credit institutions authorised to engage in foreign exchange activity shall determine the difference between the buying rate and selling rate.

Article 2. This Decision shall be effective from 24 March 2009 and replace the Decision No. 2635/QD-NHNN dated 6 November 2008 of the Governor of the State Bank on the issuance of some provisions relating to foreign currency transaction by credit institutions authorized to engage in foreign exchange activity.

Article 3. Director of the Administrative Department, the Director of the Foreign Exchange Control Department, Heads of related units of the Central State Bank, General Managers of State Bank branches in provinces, cities under the central Government’s management, Chairman of the Board of Directors and General Directors (Directors) of credit institutions authorised to engage in foreign exchange activity shall be responsible for the implementation of this Decision.