Headlines 08/04/2021 09:23 SA

Regulations on types and scope of credit institutions’ permitted foreign currency transactions are about to take effect

Xuân Dũng

This is the highlight of the Circular No. 02/2021/TT-NHNN providing instructions about foreign exchange transactions of credit institutions licensed to provide foreign exchange services (briefly called authorized credit institutions).

Types and scope of credit institutions’ permitted foreign currency transactions, including:

- Spot, forward, swap and option transactions with other authorized credit institutions;

- Spot, forward, swap and put option transactions with economic organizations;

- Spot and forward transactions with residents that are other organizations and individuals;

(put option transactions are permitted under Article 4 of Circular No. 15/2015/TT-NHNN currently in effect);

- Spot transactions with non-residents that are organizations or individuals; forward sale transactions with non-residents (only spot transactions are permitted under current regulations);

- Forward sale transactions with non-residents that are foreign investors holding government bonds issued in Vietnamese dong in the domestic market as provisions for exchange rate risks to their bonds.

Circular No. 02/2021/TT-NHNN is entering into force as of May 17, 2021.

>> CLICK HERE TO READ THE ARTICLE IN VIETNAMESE

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