On October 25, 2023, the Governor of the State Bank of Vietnam (SBV) issued Decision No. 1985/QD-NHNN on a timed permission for the Military Joint Stock Commercial Bank (MB) to conduct other foreign exchange operations. This Decision took effect from the date of signing.
Specifically, the SBV Governor has permitted MB, established and operating under License No. 100/GP-NHNN dated October 16, 2018, to carry out a number of foreign exchange operations, specifically as follows:
(i) Names of operations, products or groups of products: Conducting forex forward trading and foreign currency swaps with foreign banks with the aim of supporting the foreign currency liquidity for MB; Conducting forex forward trading and foreign currency swaps with foreign banks with the aim of preventing and limiting risks for the transactions that MB has concluded and implemented with licensed domestic credit institutions; Conducting forex trading options with foreign banks with the aim of preventing and limiting risks for the transactions that MB has concluded and implemented with licensed domestic customers and non-credit institutions.
(ii) Duration of implementation: two (02) years from the effective date of this Decision.
Also in the Decision, MB is clearly requested to formulate and take responsibility for the substances of its internal regulations for its operational procedures and the risk management procedures for the forex operations permitted in this Decision. MB shall only be allowed to conduct the above-mentioned forex operations after having formulated its internal regulations on its operational procedures, and shall conduct these forex operations in line with the formulated internal operational procedures. All transactions shall be monitored and managed in line with the applicable regulations on internal controls and audit. When carrying out the above-mentioned foreign exchange operations, MB shall comply with the applicable regulations on forex management and other relevant laws.
Le Hang