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 in 1997 and the Law on the amendment, supplement of several Articles of the Law on the State Bank of Vietnam in 2003;
- Pursuant to the Law on Credit Institutions in 1997 and the Law on amendment, supplement of several Articles of the Law on Credit Institutions in 2004;
- Pursuant to the Decree No. 52/2003/ND-CP dated 19 May 2003 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 +2% (two 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.

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Article 2. This Decision shall be effective from 27 June 2008 and replace the Decision No. 504/QD-NHNN dated 7 March 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 the State Bank branches in the provinces and cities under the central Governments 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.

THE GOVERNOR OF THE STATE BANK OF VIETNAM




Nguyen Van Giau