Press release on issuance of Circular No.02/2021/TT-NHNN
Hanoi, March 31, 2021. The Governor of the State Bank of Vietnam (SBV) has issued Circular No. 02/2021/TT-NHNN providing guidance for the forex transactions in the forex market by licensed credit institutions.
The Circular is composed of 4 Chapters, with 22 Articles, and shall replace Circular No. 15/2015/TT-NHNN dated October 2, 2015 providing guidance for the forex transactions in the forex market by licensed credit institutions.
A number of changes as compared with Circular No. 15/2015/TT-NHNN are:
1. Licensed credit institutions are allowed to sell term foreign currencies to foreign investors who possess Government bonds issued in VND in the domestic market for the purpose of provisioning for exchange rate risks related to the invertors’ bonds.
2. Licensed credit institutions are allowed to make swap transactions of foreign currencies with maturities of under 3 working days in order to meet the demand for liquidity and capital management.
3. Licensed credit institutions and their customers are allowed to make swap transactions to extend the maturities of the forex forward contracts signed between the customers and the licensed credit institution for the purpose of provisioning for exchange rate risks related to medium and long term loans in foreign currencies, with the terms or remaining maturities of over 365 days.
4. Licensed credit institutions are allowed to make swap transactions to amend the maturities of the forex forward contracts singed with their customers based on the customers’ written requests enclosed with necessary documents and papers providing a reasonable rationale for maturity amendment of the signed forex forward contracts.
5. Licensed credit institutions are allowed to make spot forex sales to the customers who have demand for forex but their contracts are not yet due, provided that the customers must be Vietnamese citizens, with demand for forex in cash for the purpose of either studying, healthcare treatment, business missions, tourism or visiting relatives overseas.
The new Circular shall take effect from May 17, 2021.
Translated by Le Hang