Circular No. 12/2023/TT-NHNN Amending and supplementing certain provisions of legal documents governing the implementation of state foreign exchange reserve management tasks

CIRCULAR

Amending and supplementing certain provisions of legal documents regulating the implementation of tasks related to state foreign exchange reserves management

the implementation of the task of managing the state foreign exchange reserve

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

On the basis of the Foreign Exchange Law dated December 13, 2005; the Ordinance Amending and Supplementing Certain Articles of the Foreign Exchange Law dated March 18, 2013;

Pursuant to Decree No. 50/2014/NĐ-CP dated May 20, 2014 of the Government on state foreign exchange reserves management;

Pursuant to Decree No. 102/2022/NĐ-CP dated December 12, 2022 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of the Department of Foreign Exchange Management;

The Governor of the State Bank of Vietnam issues this Circular amending and supplementing certain provisions of legal documents regulating the implementation of tasks related to state foreign exchange reserves management.

Article 1. Amending, supplementing, and replacing certain phrases, points, clauses, and articles of Circular No. 01/2014/TT-NHNN dated December 10, 2014 of the Governor of the State Bank of Vietnam guiding the organization and implementation of activities related to state foreign exchange reserves management

1. Amending and supplementing Point b Clause 2 Article 1 as follows:

“b) Units under the State Bank include: the National Foreign Exchange Reserve Management Department, the Foreign Exchange Management Department, the Trading Department, the Monetary Policy Department, the Internal Audit Department, the Finance and Accounting Department, the Forecasting and Statistics Department, the Legal Affairs Department, the Issuance and Treasury Department, the International Cooperation Department, and the Communication Department.”

2. Amending and supplementing Clause 2 and Clause 4 Article 3 as follows:

“2. By the end of the first quarter each year at the latest, the National Foreign Exchange Reserve Management Department shall take the lead and coordinate with the Monetary Policy Department, the Foreign Exchange Management Department, and the Forecasting and Statistics Department to determine the level of state foreign exchange reserves for the year to be submitted to the Governor for approval and reported to the Prime Minister.”

b) Amend and supplement Clause 4 as follows:

“4. The National Foreign Exchange Reserve Management Department shall take the lead and coordinate with the Monetary Policy Department, the Foreign Exchange Management Department, and the Forecasting and Statistics Department to determine the limit of the Exchange Rate Stabilization Fund and manage the gold market, to be reported to the Governor for submission to the Prime Minister for approval during each period.”

3. Amending and supplementing Clause 5 and adding Clause 6a to Article 4 as follows:

a) Amending and supplementing Clause 5 (which has been amended and supplemented by Clause 1 Article 1 of Circular No. 01/2020/TT-NHNN dated December 31, 2020 of the Governor of the State Bank of Vietnam amending and supplementing certain provisions of Circular No. 01/2014/TT-NHNN dated December 10, 2014 of the Governor of the State Bank of Vietnam guiding the organization and implementation of activities related to state foreign exchange reserves management) as follows:

“5. Every six months, the National Foreign Exchange Reserve Management Department shall take the lead and coordinate with the Monetary Policy Department, the Foreign Exchange Management Department, and the Forecasting and Statistics Department to assess the situation of managing and implementing the standards and limits of state foreign exchange reserve investment and the criteria for selecting partners to perform other reserve management operations; to establish the standards and limits of state foreign exchange reserve investment and the criteria for selecting partners to perform other reserve management operations for the next period, to be reported to the Head of the Steering Committee for the Governor's decision.”

“6a. In case there are abnormal fluctuations in domestic and international financial markets, changes in the ratings of reputable global credit rating organizations, and other cases affecting the standards and limits of state foreign exchange reserve investment, the National Foreign Exchange Reserve Management Department shall report to the Head of the Steering Committee. Based on the Head of the Steering Committee's instructions, the National Foreign Exchange Reserve Management Department shall take the lead and coordinate with relevant units to study and propose adjustment plans for the standards and limits of state foreign exchange reserve investment and the criteria for selecting partners to perform other reserve management operations, to be reported to the Head of the Steering Committee for the Governor's decision.”

“2. The National Foreign Exchange Reserve Management Department shall take the lead and coordinate with the Monetary Policy Department, the Foreign Exchange Management Department, and the Forecasting and Statistics Department to research and report to the Head of the Steering Committee for the Governor's decision:

a) To supplement other investment forms in each period;

b) To guide investment for entrusted investment and other investment forms approved by the Governor according to the provisions of point a of this clause in each period.”

3. Based on the Governor's Decision on supplementing investment forms, the National Foreign Exchange Reserve Management Department shall supplement other investment forms into the official investment structure of state foreign exchange reserves and submit it to the Governor for decision. Based on the Governor's Decision on the official investment structure of state foreign exchange reserves, the National Foreign Exchange Reserve Management Department shall supplement other investment forms into the official investment plan.

4. Based on the Governor's Decision on guiding investment for entrusted investment and other investment forms as stipulated in Clause 2 of this Article, the National Foreign Exchange Reserve Management Department shall submit partner candidates and agreement contents to the Head of the Steering Committee for approval. Based on the Head of the Steering Committee's approval, the National Foreign Exchange Reserve Management Department shall implement investment and entrusted investment.”

a) Amend and supplement Clause 2 as follows:

“2. Every six months, the National Foreign Exchange Reserve Management Department shall take the lead and coordinate with the Monetary Policy Department, the Foreign Exchange Management Department, and the Forecasting and Statistics Department to assess the situation of managing and implementing the official investment structure of state foreign exchange reserves; to establish the official investment structure of state foreign exchange reserves for the next period, to be reported to the Head of the Steering Committee for the Governor's decision.”

b) Amend and supplement Clause 4 as follows:

“4. In case there are abnormal fluctuations in domestic and international financial markets, significant changes in monetary policy targets, major trends in investing in various currencies and gold in international reserves of countries around the world, significant fluctuations in the scale of state foreign exchange reserves, and other cases affecting the official investment structure of state foreign exchange reserves, the National Foreign Exchange Reserve Management Department shall report to the Head of the Steering Committee. Based on the Head of the Steering Committee's instructions, the National Foreign Exchange Reserve Management Department shall take the lead and coordinate with relevant units to study and propose adjustment plans for the official investment structure of state foreign exchange reserves, to be reported to the Head of the Steering Committee for the Governor's decision.”

"3. Quarterly or as necessary, the State Foreign Exchange Reserve Management Agency shall take the lead and coordinate with the Department of Foreign Exchange Management, the Monetary Policy Department, and the Forecasting, Statistics, and Evaluation Department to review the implementation of the previous period's official foreign exchange reserve investment plan and develop the next period's official foreign exchange reserve investment plan for approval by the Head of the Management Board."

“a) Establishing and developing effectively concentrated raw material zones according to the orientations set forth in Decree No. 98/2018/NĐ-CP dated July 5, 2018 of the Government on policies encouraging the development of cooperation and linkage in agricultural production and consumption; Decision No. 100/QĐ-TTg dated January 19, 2019 of the Prime Minister approving the project to implement, apply, and manage traceability systems; Decision No. 1804/QĐ-TTg dated November 13, 2020 of the Prime Minister approving the Program to support the development of collective economic organizations and cooperatives from 2021 to 2025; Decision No. 255/QĐ-TTg dated February 25, 2021 of the Prime Minister approving the Plan to restructure the agricultural sector from 2021 to 2025; Decision No. 885/QĐ-TTg dated June 23, 2020 of the Prime Minister approving the Project to develop organic agriculture from 2020 to 2030, and according to the planning of concentrated raw material zones of localities.”

“Article 8. Implementation of Derivative Foreign Exchange Transactions

1. Based on the risk management needs for the official foreign exchange reserve investment activities, the State Foreign Exchange Reserve Management Agency shall take the lead and coordinate with the Monetary Policy Department to report to the Head of the Management Board for submission to the Governor for decision on the use of derivative foreign exchange transactions and the applicable limits for each transaction.

2. On the basis of the derivative foreign exchange transactions and the applicable limits for each transaction decided by the Governor and the investment plan approved by the Head of the Management Board, the State Foreign Exchange Reserve Management Agency shall organize the implementation of derivative foreign exchange transactions."

“a) Based on the request from the Ministry of Finance to purchase foreign currency to meet the state budget’s foreign currency needs, the State Foreign Exchange Reserve Management Agency shall coordinate with the Monetary Policy Department to develop a plan for selling foreign currency to the state budget for approval by the Governor and notify the Ministry of Finance;"

9. Amend and supplement Article 10 as follows:

“Article 10. Export and Import of Gold

1. Based on the gold investment structure within the official state foreign exchange reserves, the State Foreign Exchange Reserve Management Agency shall coordinate with the Monetary Policy Department, the Issuance and Treasury Department, the Department of Foreign Exchange Management, and related units to report to the Head of the Management Board for submission to the Governor for approval of the export and import of gold, including:

a) The volume of gold to be exported and imported;

b) The type of gold to be exported and imported;

c) Principles for determining the price of exported and imported gold;

d) The time for exporting and importing gold;

đ) Other related contents.

2. The export and import of gold to offset the volume of gold purchased and sold to intervene in the domestic gold market shall be carried out in accordance with the provisions of Article 19 of this Circular.

3. Based on the Prime Minister's approval for the export and import of gold, the State Foreign Exchange Reserve Management Agency shall conduct transactions with foreign partners, handle payment procedures, and guide delivery and receipt. The Issuance and Treasury Department shall take the lead and coordinate with related units to handle customs procedures, deliver and receive gold."

10. Amend and supplement Article 11 as follows:

"Article 11. Transfer of Foreign Exchange from the Foreign Exchange Reserve Fund to the Exchange Rate Stabilization Fund and Gold Market Management Fund

1. In cases where the balance of foreign exchange in the Exchange Rate Stabilization Fund and Gold Market Management Fund does not meet intervention requirements, the State Foreign Exchange Reserve Management Agency shall take the lead and coordinate with the Monetary Policy Department to report to the Governor for submission to the Prime Minister for approval of the transfer of foreign exchange from the Foreign Exchange Reserve Fund to the Exchange Rate Stabilization Fund and Gold Market Management Fund.

2. Based on the Prime Minister's approval, the State Foreign Exchange Reserve Management Agency shall submit to the Governor for issuance of a Decision transferring foreign exchange from the Foreign Exchange Reserve Fund to the Exchange Rate Stabilization Fund and Gold Market Management Fund.

3. The State Foreign Exchange Reserve Management Agency shall implement the transfer of foreign exchange from the Foreign Exchange Reserve Fund to the Exchange Rate Stabilization Fund and Gold Market Management Fund according to the Governor's Decision."

11. Amend and supplement Article 14 as follows:

"Article 14. Use of the Foreign Exchange Reserve Fund for Urgent and Critical Needs of the State

1. Based on the Ministry of Finance's proposal to use the Foreign Exchange Reserve Fund for urgent and critical state needs, the State Foreign Exchange Reserve Management Agency shall take the lead and coordinate with the Monetary Policy Department to submit to the Governor for comments on the Ministry of Finance's proposal to report to the Prime Minister for decision.

2. Based on the Prime Minister's Decision and the Ministry of Finance's request letter, the State Foreign Exchange Reserve Management Agency shall submit to the Governor for issuance of a Decision using foreign exchange from the Foreign Exchange Reserve Fund for urgent and critical state needs.

3. The State Foreign Exchange Reserve Management Agency shall carry out the withdrawal of foreign exchange according to the Governor's Decision, report to the Head of the Management Board, and send relevant Departments.

4. In cases where foreign exchange is used for temporary advances or loans to the state budget according to the Prime Minister's Decision, the State Foreign Exchange Reserve Management Agency shall be responsible for accounting, monitoring, and recovering the advances and loans according to the Governor's Decision, quarterly reporting to the Governor and the Head of the Management Board on the progress of repayment of advances and loans, and sending to the Internal Audit Department.

5. In cases where the advances and loans are not repaid according to the Prime Minister's Decision on the use of the Foreign Exchange Reserve Fund for urgent and critical state needs, the State Foreign Exchange Reserve Management Agency shall take the lead and coordinate with the Monetary Policy Department and related units to submit to the Governor for comments on the Ministry of Finance to report to the Prime Minister for decision on recovery."

"2. The Monetary Policy Department shall take the lead and coordinate with the State Foreign Exchange Reserve Management Agency:

a) Report to the Governor for submission to the Prime Minister for approval of other forms of foreign exchange market intervention specified in Point c Clause 1 of this Article;

b) Submit to the Governor for decision on other forms of buying and selling specified in Point a Clause 1 of this Article;

c) Propose an intervention plan for the foreign exchange market to report to the Head of the Management Board for approval by the Governor."

13. Amend and supplement Clause 2 Article 23 as follows:

"2. The State Foreign Exchange Reserve Management Agency shall take the lead and coordinate with the Monetary Policy Department and related units to report to the Head of the Management Board for the Governor's decision on supplementing other short-term investment forms and other management operations specified in Points a and d Clause 1 of this Article during each period."

14. Amend and supplement Article 25 as follows:

Article 25. Guidelines for investment of foreign currency deposits and gold of the State Treasury, credit institutions at the State Bank and other foreign exchange sources

1. The National Foreign Exchange Reserve Management Department shall take the lead and coordinate with the Monetary Policy Department, the Foreign Exchange Management Department, the Forecasting and Statistics Department, and related units to report to the Head of the Management Board for the Governor's decision on guidelines for investment of foreign currency deposits and gold of the State Treasury, credit institutions at the State Bank and other foreign exchange sources during each period.

2. Based on the investment guidelines decided by the Governor, the National Foreign Exchange Reserve Management Department shall organize the implementation of investment for the source of foreign currency deposits and gold of the State Treasury, credit institutions at the State Bank and other foreign exchange sources.

15. Amend and supplement Article 27 as follows:

“Article 27. Reporting System

1. By August 15th each year at the latest, the National Foreign Exchange Reserve Management Department shall take the lead and coordinate with related units to build and submit to the Governor for approval the Report on the scale and usage situation of the national foreign exchange reserve in the first six months of the year to report to the Prime Minister, and send copies to the Ministry of Finance.

2. By March 31st each year at the latest, the National Foreign Exchange Reserve Management Department shall take the lead and coordinate with the Monetary Policy Department, the Foreign Exchange Management Department, the Forecasting and Statistics Department to build and submit to the Governor for approval the Report on the management situation of the national foreign exchange reserve in the previous year and the forecast level of the national foreign exchange reserve in the reporting year to report to the Prime Minister, and send copies to the Ministry of Finance.

3. By the last working day of each month at the latest, the National Foreign Exchange Reserve Management Department shall report to the Governor and the Head of the Management Board, and send copies to the member units of the Management Board and the Internal Audit Department on the management situation of the national foreign exchange reserve in the previous month.

“Article 28. Information Provision System

The provision of information to serve the management of the national foreign exchange reserve shall be carried out as follows:

1. The National Foreign Exchange Reserve Management Department shall provide:

a) Daily: Data on the national foreign exchange reserve of the previous working day according to the model prescribed in Appendix 01 issued together with this Circular;

b) By the fifth day of each month at the latest: The Official Reserve Composition Report and the Report on the Usage Situation of the National Foreign Exchange Reserve in the previous month according to the models prescribed in Appendices 02 and 03 issued together with this Circular;

c) By the fifteenth day of each month at the latest:

- The Report on the Investment Situation of the National Foreign Exchange Reserve Abroad in the previous month according to the model prescribed in Appendix 06 issued together with this Circular;

- The Report on the Investment Situation of the National Foreign Exchange Reserve Abroad by Investor in the previous month according to the model prescribed in Appendix 07 issued together with this Circular;

d) By the last day of the first month of each quarter or when necessary: The National Foreign Exchange Reserve Management Department shall provide to the Internal Audit Department documents evaluating and ranking correspondent banks in the previous quarter including: documents from international credit rating organizations and evaluation documents of the National Foreign Exchange Reserve Management Department based on the assessment criteria of international credit rating organizations;

đ) Report to the Governor and the Head of the Management Board the results of the domestic gold bar auction and the purchase of gold corresponding on the international market on the day the State Bank conducts the auction, and send copies to the Foreign Exchange Management Department, the Monetary Policy Department, and the Internal Audit Department;

e) Provide to the member units of the Management Board and the Internal Audit Department:

- The Governor's Decision on the official reserve composition, standards, and investment limits of the national foreign exchange reserve in each period;

- The limit of the Exchange Rate Stabilization Fund and gold market management approved by the Prime Minister in each period;

- Decisions and documents on the use of the national foreign exchange reserve according to the Prime Minister's Decision.

2. The Forecasting and Statistics Department shall provide to the National Foreign Exchange Reserve Management Department:

a) By the twenty-fifth day of each month at the latest: Data related to the liquidity situation of foreign currencies and the deposit situation of foreign currencies and gold of the State Treasury and credit institutions at the State Bank in the previous month;

b) By forty-five days after the end of the reported quarter/60 days after the end of the reported year at the latest: Data on the balance of payments implementation in the previous quarter/year and the estimated implementation of the balance of payments for the current quarter/year;

c) By the twentieth day of the last month of each quarter at the latest: A forecast of the international financial market situation according to countries and regions with currencies included in the national foreign exchange reserve for the next quarter;

d) By the fifteenth day of the first month of each quarter at the latest: A report on the money supply inflation rate and macroeconomic indicators in the previous quarter;

đ) By the last day of each month at the latest: The Balance Sheet of the State Bank and the Industry-wide Balance Sheet of the previous month.

3. The Monetary Policy Department shall provide to the National Foreign Exchange Reserve Management Department:

a) Semi-annually: The Report on the proportion of foreign currencies in foreign exchange transactions between credit institutions and customers according to the model prescribed in Appendix 08 issued together with this Circular;

b) Reports on monetary policy management, banking operations, and solutions.

4. By the fifteenth day of the first month of each quarter and when there are changes, the Issuance and Treasury Department shall report on the stock of standard gold, gold bars, and other gold at the State Bank's warehouses according to the model prescribed in Appendix 04 issued together with this Circular.

5. By January 31st each year at the latest, the International Cooperation Department shall provide to the National Foreign Exchange Reserve Management Department the projected disbursement figures by quarter of programs and projects directly supporting the budget from international organizations and partners in the year according to the model prescribed in Appendix 05 issued together with this Circular.

6. By the fifteenth day of each month at the latest, the Financial Accounting Department shall provide to the National Foreign Exchange Reserve Management Department, the Monetary Policy Department, and the Internal Audit Department the balance of accounts Capital Revaluation - Foreign Currency Revaluation and Exchange Rate Differences of the previous month.

7. The State Foreign Exchange Reserve Management Department, the Monetary Policy Department, and related units shall provide the Internal Audit Department with necessary information on the State's foreign exchange reserves upon internal audit requests.

8. The Foreign Exchange Management Department shall provide the State Foreign Exchange Reserve Management Department with the following:

a) Semi-annually: The proportion of various foreign currencies in Vietnam’s external borrowing and repayment activities;

b) Domestic and international gold market conditions, intervention capabilities, and gold import requirements (if any).

9. The Trading Department shall provide:

a) Daily: Reports on the balances of foreign currency deposits and gold of the State Treasury, credit organizations at the State Bank, and other sources of foreign exchange according to the form prescribed in Appendix No. 09 issued together with this Circular.

b) Data on the State's foreign exchange reserves of the previous working day according to the form prescribed in Appendix 01 issued together with this Circular and the Report on the situation of using the State's foreign exchange reserves for the previous month according to the form prescribed in Appendix 03 issued together with this Circular until the Governor decides to transfer the State Foreign Exchange Reserve Management Department to implement as stipulated in points a and b of Clause 1 of Article 7 of this Decree.

17. Amend and supplement Article 29 as follows:

“Article 29. Disclosure of Information

The State Foreign Exchange Reserve Management Department shall coordinate with the Communication Department and the International Cooperation Department to disclose information about the State's foreign exchange reserves in accordance with the provisions of the law.

18. Amend and supplement Clause 1, Clause 2, and add Clause 6 to Article 32 as follows:

a) Amend and supplement Clause 1 and Clause 2 as follows:

"1. The State Foreign Exchange Reserve Management Department:

a) Shall take the lead and coordinate with the Monetary Policy Department and related units to draft and report to the Head of the Management Board for the Governor to issue legal normative documents related to the management of the State's foreign exchange reserves;

b) Shall take the lead and coordinate with the Monetary Policy Department and the Internal Audit Department to draft and report to the Head of the Management Board for the Governor to issue Decisions on the establishment and operation of the Management Board for managing the State's foreign exchange reserves and the Decision on the decision-making authority of the Head of the Management Board and the Director of the State Foreign Exchange Reserve Management Department during each period;

c) Shall take the lead and coordinate with the Monetary Policy Department, the Foreign Exchange Management Department, and the Forecasting and Statistics Department to report to the Head of the Management Board for the Governor to decide on the use of other official foreign exchange reserve management operations as provided for in Clause 5 of Article 10 of Decree No. 50/2014/ND-CP dated May 20, 2014 of the Government on the management of the State's foreign exchange reserves;

d) Shall take the lead and coordinate with the Monetary Policy Department, the Foreign Exchange Management Department, and the Forecasting and Statistics Department to report to the Head of the Management Board for the Governor to decide on adding more types of foreign currencies allowed for investment in the structure of official foreign exchange reserves as provided for in Article 7 of Decree No. 50/2014/ND-CP dated May 20, 2014 of the Government on the management of the State's foreign exchange reserves;

đ) Shall determine the price of gold in US dollars and Vietnamese dong of gold included in the State's foreign exchange reserves and notify relevant units according to the principles specified in Clause 2 of Article 26 of this Circular;

e) Shall develop internal management procedures at the State Foreign Exchange Reserve Management Department to organize the implementation of the management of the State's foreign exchange reserves in accordance with the provisions of this Circular;

g) Shall take the lead and coordinate with the Legal Affairs Department and related units to negotiate terms and conditions in agreements between the State Bank and foreign partners related to the management of the State's foreign exchange reserves;

h) Shall represent the State Bank to sign inspection reports on the management of the State's foreign exchange reserves with inspection teams from the Ministry of Finance based on the approval of the Governor or Deputy Governor in charge;

i) Shall propose to the Head of the Management Board for the management of the State's foreign exchange reserves to approve the purchase and sale of foreign currencies for credit institutions within the authority of the Head of the Management Board for the management of the State's foreign exchange reserves;

k) Shall publish certain contents of intervention plans on the FXT trading network or other means of communication upon approval by the Governor for each intervention plan in the foreign exchange market;

l) Shall publish reference exchange rates between the Vietnamese dong and foreign currencies included in the structure of official foreign exchange reserves on the electronic information website of the State Bank and the Refinitiv information system;

m) Shall record transactions arising from the State's foreign exchange reserves according to the guidance of the Financial Accounting Department;

n) Shall perform other tasks as prescribed in this Circular.

2. The Trading Department:

a) Shall record transactions arising from the State's foreign exchange reserves according to the guidance of the Financial Accounting Department;

b) Shall perform other tasks as prescribed in this Circular."

b) Supplement Clause 6 as follows:

"6. In case the Head of the Management Board is absent, the main units shall seek opinions from related units as prescribed in this Circular and submit to the Governor for approval or decision."

19. Replace some phrases as follows:

a) Replace the phrase "Foreign Exchange Management Department" with the phrase "State Foreign Exchange Reserve Management Department" in Article 13 and Clause 1 of Article 22.

b) Replace the phrase "Trading Department" with the phrase "State Foreign Exchange Reserve Management Department" in Clause 6 of Article 4, Clause 3 of Article 6, Clause 4 of Article 7, Clause 1, Point b of Clause 2 of Article 9, Clause 2 of Article 12, Clause 6 of Article 15, Clauses 2, 3, 7 of Article 16, Clause 2 of Article 17, Article 18, Clause 2 of Article 19, Clause 1 of Article 20, Article 21, Clauses 2, 3 of Article 22, and Clause 3 of Article 26.

c) Replace the phrase "Director of the Trading Department" with the phrase "Director of the State Foreign Exchange Reserve Management Department" in Point b of Clause 3 of Article 12, Clause 8 of Article 16, Clause 4 of Article 19, Point b of Clause 2 of Article 30, and Article 31.

20. Replace and supplement Appendices as follows:

a) Replace Appendices No. 01, 02, 03, 04, 05, 06, 07, 08 issued together with Circular No. 01/2014/TT-NHNN with Appendices No. 01, 02, 03, 04, 05, 06, 07, 08 respectively issued together with this Circular.

Article 2. Amend, supplement, and replace certain phrases, points, and clauses of Circular No. 06/2013/TT-NHNN dated March 12, 2013, issued by the Governor of the State Bank of Vietnam guiding the activities of buying and selling gold bars on the domestic market of the State Bank of Vietnam.

1. Amend and supplement Article 14 as follows:

“Article 14. Notification of Transaction Results

The National Foreign Exchange Reserve Management Department shall notify in writing the Foreign Exchange Management Department, the Finance and Accounting Department, the Trading Center, and the Issuance and Treasury Department about the results of transactions in buying and selling gold bars with each credit institution and enterprise after confirming the transaction.”

2. Amend and supplement point b of Clause 1 and point b of Clause 2 of Article 15 as follows:

a) Amending and supplementing Point b Clause 1 as follows:

“b) At the end of the day when confirming the transaction and at the end of the next working day following the confirmation of the transaction, the National Foreign Exchange Reserve Management Department shall prepare a list of credit institutions and enterprises that have fully paid for the purchase of gold bars on the same day and notify in writing the Finance and Accounting Department and the Issuance and Treasury Department to proceed with the procedures for delivering gold bars to credit institutions and enterprises according to the provisions of point c of this Clause.”

b) Amending and supplementing Point b Clause 2 as follows:

“b) Immediately after the completion of the delivery and receipt of gold bars, the Issuance and Treasury Department shall notify in writing the National Foreign Exchange Reserve Management Department and the Trading Center to proceed with the payment to credit institutions and enterprises.”

3. Amend and supplement Article 20 as follows:

“Article 20. Responsibilities of the National Foreign Exchange Reserve Management Department

1. Serve as the coordinating body to work with the Foreign Exchange Management Department to submit to the Governor of the State Bank of Vietnam for consideration and decision to temporarily suspend transactions or terminate relationships in buying and selling gold bars with credit institutions and enterprises as stipulated in Article 5 of this Circular; and notify credit institutions and enterprises of the State Bank's decision regarding the temporary suspension of transactions or termination of the relationship in buying and selling gold bars.

2. Serve as the coordinating body and cooperate with the Trading Center to implement the settlement operations for buying and selling gold bars.

3. Notify in writing credit institutions and enterprises about the non-refund of the deposit.

4. Notify and update the Banking Supervision Agency, the Foreign Exchange Management Department about the list of credit institutions and enterprises establishing relationships in buying and selling gold bars with the State Bank.

5. Cooperate with the Foreign Exchange Management Department and the Monetary Policy Department to develop plans for the State Bank’s buying and selling of gold bars.

6. Cooperate with the Foreign Exchange Management Department to determine the purchase price, sale price (for direct purchases and sales and tendering based on quantity), floor price, ceiling price (for tendering based on price) according to the approved plan for buying and selling.

7. Notify in writing the Trading Center about credit institutions and enterprises violating obligations as stipulated in Article 13 of this Circular to serve as the basis for handling deposits according to the provisions of Article 16 of this Circular.

8. Other responsibilities as prescribed in this Circular.”

4. Amend and supplement Clause 2 of Article 23 as follows:

“2. Notify in writing the Trading Center and the National Foreign Exchange Reserve Management Department about credit institutions and enterprises violating the obligation to deliver gold bars to serve as the basis for handling deposits according to the provisions of Article 16 of this Circular and to serve as the basis for considering the temporary suspension of transactions according to the provisions of Clause 1 of Article 5 of this Circular.”

5. Amend and supplement Article 25 as follows:

“Article 25. Responsibilities of the Banking Inspection and Supervision Agency

1. Notify in writing to the State Foreign Exchange Reserve Management Department the information specified in Point d Clause 1, Clause 2 and Clause 3 of Article 5 of this Circular.

2. Based on the proposal of the Special Control Board at credit institutions as stipulated in Point b Clause 2 of Article 5 of this Circular, act as the lead in submitting to the Governor for permission to terminate the permission for credit institutions placed under special control to conduct transactions of buying and selling gold bars with the State Bank; notify the credit institution of the State Bank's decision regarding granting or terminating the permission for such transactions, and send it to the Special Control Board at the credit institution, the State Foreign Exchange Reserve Management Department, and the Trading Department.

3. Conduct inspection and supervision activities on the purchase and sale of gold bars between credit institutions, enterprises, and the State Bank in accordance with the provisions of the law.

6. Supplement Article 25a as follows:

“Article 25a. Responsibilities of the Trading Department

1. Carry out payment operations for the purchase and sale of gold bars based on notifications from the State Foreign Exchange Reserve Management Department.

2. Perform other tasks as prescribed in this Circular.

7. Replace certain phrases as follows:

a) Replace the phrase "Trading Department" with the phrase "State Foreign Exchange Reserve Management Department" in Article 3, Clause 4 of Article 4, Clause 1 and Clause 3 of Article 11, Clause 1 and 2 of Article 12, Clause 6 of Article 19, Clause 2 and Clause 3 of Article 21, Article 22, Appendices 1, 2, and 3 issued together with Circular No. 06/2013/TT-NHNN.

b) Replace the phrase "Director of the Trading Department" with the phrase "Director of the State Foreign Exchange Reserve Management Department" in Appendix 3 issued together with Circular No. 06/2013/TT-NHNN.

Article 3. Replace phrases in Circular No. 26/2021/TT-NHNN dated December 31, 2021, guiding foreign currency transactions between the State Bank of Vietnam and authorized foreign exchange credit institutions

Replace the phrase "Trading Department" with the phrase "State Foreign Exchange Reserve Management Department" in Clause 2 of Article 12, Clause 1, Clause 2, and Clause 4 of Article 15, Article 17, Article 18, Article 19, Appendices 1, 2, and 3 issued together with Circular No. 26/2021/TT-NHNN.

Article 4. Replace and abolish certain phrases and clauses in Circular No. 32/2018/TT-NHNN dated December 18, 2018, guiding the process of converting foreign currencies by the State Bank for projects guaranteed and supported by the Government

1. Replace the phrase "Trading Department" with the phrase "State Foreign Exchange Reserve Management Department" in Clause 2 of Article 4, Article 5, Clause 1 and Clause 3 of Article 6, Article 9, and Article 10.

2. Abolish Clause 2 of Article 6.

Article 5. Supplement phrases in Circular No. 38/2013/TT-NHNN dated December 31, 2013, stipulating the translation of accounting documents recorded in foreign languages when used for bookkeeping, the writing of figures on accounting documents, and the storage of electronic accounting documents at the State Bank of Vietnam

Supplement the phrase "and the State Foreign Exchange Reserve Management Department" after the phrase "Trading Department" in Article 5, Clause 3 of Article 8, and Clause 3 of Article 9.

Article 6. Amend and supplement Clause 3 of Article 1 Circular No. 39/2013/TT-NHNN dated December 31, 2013, stipulating the determination, provision, management, and utilization of risk reserve funds of the State Bank of Vietnam

Amend and supplement Clause 3 of Article 1 as follows:

"3. This Circular applies to the State Foreign Exchange Reserve Management Department, the Financial and Accounting Department, the Trading Department, the Information Technology Department, the Issuance and Treasury Department, the Administrative Department, the Banking Inspection and Supervision Agency, the State Bank branches in provinces and centrally-administered cities, and non-autonomous units under the State Bank (hereinafter referred to as units under the State Bank)."

Article 7. Amend and supplement Article 12 of Circular No. 25/2020/TT-NHNN dated December 31, 2020 issued by the Governor of the State Bank of Vietnam on the Procedures for Circulation, Control, Reconciliation, and Aggregation of Accounting Documents in the "Core Banking, Accounting, Budget Preparation, and Integration System" at the State Bank of Vietnam.

Amend and supplement Article 12 as follows:

“Article 12. Circulation, Control, Reconciliation, and Aggregation of Documents at the Trading Department and the State Foreign Exchange Reserve Management Department

The Trading Department and the State Foreign Exchange Reserve Management Department shall issue internal regulations on circulation, control, reconciliation, aggregation, arrangement, and closing of documents in accordance with the characteristics of their operations and accounting work organization principles as follows:

1. Circulation, control, and reconciliation of documents shall comply with the provisions of Article 4 of this Circular; ensuring accurate matching from detailed accounting to consolidated accounting.

2. Aggregation, arrangement, and closing of documents shall ensure convenience for post-audit work, document retrieval when stored, and prevent loss of documents.”

Article 8. Amend, supplement, and replace certain phrases and articles of Circular No. 26/2013/TT-NHNN dated December 5, 2013 issued by the Governor of the State Bank of Vietnam on the Fee Schedule for Payment Services through the State Bank of Vietnam.

1. Market management agencies at all levels include: the Department of Domestic Market Management and Development under the Ministry of Industry and Trade; the Market Management Business Unit under the Department of Domestic Market Management and Development; the Market Management Sub-department under the Department of Industry and Trade of provinces and centrally-administered cities; and the Market Management Team under the Market Management Sub-department.

“Article 2. Monthly, the branches of the State Bank of Vietnam under provincial and centrally-administered city People's Committees, the Trading Department of the State Bank of Vietnam shall use the forms in Annexes 01 to 07 and Annexes 09, 11 attached to this Circular to calculate, collect payment service fees, and aggregate payment service fee data according to the form in Annexes 08, 12 attached to this Circular; the State Foreign Exchange Reserve Management Department shall use the form in Annex 10 to calculate and collect international payment service fees.

In case the balance on the foreign currency payment account of the fee payer at the State Bank of Vietnam is insufficient to record a Debit Account and collect the fee, the Trading Department of the State Bank of Vietnam (for the maintenance fee for foreign currency deposit balances on payment accounts as stipulated in Clause 1b of this Circular) and the State Foreign Exchange Reserve Management Department (for international payment service fees in Part IV of the Fee Schedule for Payment Services through the State Bank of Vietnam issued together with this Circular) shall convert the amount of the fee to be collected into Vietnamese Dong (VND) based on the accounting exchange rate of the State Bank of Vietnam on the day of fee collection, then debit the VND payment account of the fee payer to implement the fee collection.”

2. Replace the phrase "Trading Department of the State Bank of Vietnam" with the phrase "State Foreign Exchange Reserve Management Department" in Part IV "International Payment Service Fees" of the Fee Schedule for Payment Services through the State Bank of Vietnam issued together with Circular No. 26/2013/TT-NHNN (which has been amended and supplemented by Clause 3 of Article 1 of Circular No. 15/2020/TT-NHNN dated November 20, 2020 issued by the Governor of the State Bank of Vietnam amending and supplementing certain articles of Circular No. 26/2013/TT-NHNN dated December 5, 2013 issued by the Governor of the State Bank of Vietnam on the Fee Schedule for Payment Services through the State Bank of Vietnam).

Article 9. Amending, supplementing, and abolishing certain clauses of Circular No. 15/2020/TT-NHNN dated November 20, 2020 of the Governor of the State Bank of Vietnam amending and supplementing certain provisions of Circular No. 26/2013/TT-NHNN dated December 5, 2013 of the Governor of the State Bank of Vietnam on the fee schedule for payment services through the State Bank of Vietnam.

1. Amending and supplementing Clause 2, Clause 3, and Clause 4 of Article 3 as follows:

“2. The National Foreign Exchange Reserve Management Department shall be responsible for coordinating with the Trading Department, the Monetary Policy Department, and relevant units to study and propose the level of fees for maintaining balances on foreign currency settlement accounts to serve as the basis for the Governor of the State Bank of Vietnam to issue a Decision on the level of fees for maintaining balances on foreign currency settlement accounts at the State Bank of Vietnam.

3. The Information Technology Department shall develop software programs for calculating and collecting fees for maintaining balances on foreign currency settlement accounts and international payment service fees of the State Bank of Vietnam branches in provinces and centrally-administered cities, the National Foreign Exchange Reserve Management Department, and the Trading Department in accordance with the provisions of this Circular.

4. The Financial Accounting Department shall guide accounting entries for transactions related to fees for maintaining balances on foreign currency settlement accounts and international payment service fees of the State Bank of Vietnam branches in provinces and centrally-administered cities, the National Foreign Exchange Reserve Management Department, and the Trading Department.”

2. Abolishing Clause 2 of Article 1.

Article 10. Amending, supplementing, and replacing certain phrases and clauses in the Annual Settlement System of the State Bank of Vietnam issued together with Decision No. 1710/2005/QĐ-NHNN dated November 28, 2005 of the Governor of the State Bank of Vietnam. “2. Scope of application: The State Bank of Vietnam (SBV) Branches in provinces and centrally-administered cities; the Trading Department; the Administration Bureau; the Administrative Sub-bureau of SBV in Ho Chi Minh City; the Issuance and Treasury Bureau; the Issuance and Treasury Sub-bureau; the National Foreign Exchange Reserve Management Department; the Information Technology Department; the Information Technology Sub-bureau; the Banking Magazine; the Banking Times; the Credit Information Center; the Specialized Investment Construction Management Board of SBV; the Financial Accounting Department and other units under the State Bank of Vietnam that have accounting organizational structures (hereinafter referred to as accounting units).”

1. Amending and supplementing Clause 2 of Article 1 as follows:

2. Replacing certain phrases as follows:

a) Replacing the phrase "Financial Accounting Department" with the phrase "Financial Accounting Department" in Clause 2 of Article 1, Clause 1 of Article 3, Clause 2 of Article 5, Clause 5 of Article 6, Clause 1 of Article 7, Clause 3, Clause 4 of Article 8, Clause 2 of Article 9, Clause 1 of Article 10, Clause 2 of Article 15, Articles 16, 17, and 20.

b) Replacing the phrase "Banking Information Technology Department" with the phrase "Information Technology Department" in Clause 2 of Article 1 and Clause 4 of Article 8.

c) Replacing the phrase "Internal Audit Department" with the phrase "Internal Audit Department" in Clause 3 of Article 10 and Clause 2 of Article 20.

Article 11. Amending, supplementing, and replacing certain phrases and points in the Financial Reporting System for the State Bank of Vietnam issued together with Decision No. 23/2008/QĐ-NHNN dated August 8, 2008 of the Governor of the State Bank of Vietnam.

1. Amending and supplementing Point a of Clause 3 of Article 2 as follows:

“a. The SBV units are dependent accounting units, including: SBV branches in provinces and centrally-administered cities; the Financial Accounting Department; the Trading Department of SBV; the Administration Bureau of SBV; the Administrative Sub-bureau of SBV in Ho Chi Minh City; the Issuance and Treasury Bureau; the Issuance and Treasury Sub-bureau; the National Foreign Exchange Reserve Management Department; the Information Technology Department; the Information Technology Sub-bureau; and other units under the State Bank of Vietnam that have accounting organizational structures;”

a) Replacing the phrase "Financial Accounting Department" with the phrase "Financial Accounting Department" in Clause 2 of Article 7, Article 8, Article 13, Clause 1 of Article 15, Point a of Clause 1 of Article 19, and Model Nos. B01a/NHNN, B01b/NHNN, B03/ĐV-NHNN, B03/NHNN, B04/ĐV-NHNN issued together with Decision No. 23/2008/QĐ-NHNN dated August 8, 2008 of the Governor of the State Bank of Vietnam.

a) Replacing the phrase "Financial Accounting Department" with the phrase "Financial Accounting Department" in Clause 2 of Article 1, Clause 1 of Article 3, Clause 2 of Article 5, Clause 5 of Article 6, Clause 1 of Article 7, Clause 3, Clause 4 of Article 8, Clause 2 of Article 9, Clause 1 of Article 10, Clause 2 of Article 15, Articles 16, 17, and 20.

b) Replacing the phrase "Banking Information Technology Department" with the phrase "Information Technology Department" in Article 8.

c) Replacing the phrase "Internal Audit Department" with the phrase "Internal Audit Department" in Clause 3 of Article 8 and Clause 1 of Article 15.

The Chief of the Office, the Director of the National Foreign Exchange Reserve Management Department, and the Heads of units under the State Bank of Vietnam are responsible for implementing this Circular.

Article 12. Responsibility for Implementation

The Trading Department continues to perform the accounting tasks related to state foreign exchange reserves until the Governor decides on the allocation of accounting tasks between the National Foreign Exchange Reserve Management Department and the Trading Department.

Article 13. Transitional Provisions

This Circular takes effect from November 27, 2023.

Article 14. Implementation clause

a) Clause 2, Clause 11, Clause 12, Clause 14, and Clause 15 of Article 1 of Circular No. 01/2020/TT-NHNN dated December 31, 2020 of the Governor of the State Bank of Vietnam amending and supplementing certain provisions of Circular No. 01/2014/TT-NHNN dated December 10, 2014 of the Governor of the State Bank of Vietnam guiding the organization and implementation of state foreign exchange reserve management activities;

2. This Circular abolishes the following provisions:

b) Clause 2 and Clause 3 of Article 1 of Circular No. 12/2015/TT-NHNN dated August 28, 2015 amending and supplementing certain provisions of Circular No. 06/2013/TT-NHNN dated March 12, 2013 of the Governor of the State Bank of Vietnam guiding the gold bullion buying and selling activities on the domestic market of the State Bank of Vietnam;

c) Clause 1 of Article 1 of Circular No. 37/2018/TT-NHNN dated December 25, 2018 amending and supplementing certain provisions of Circular No. 39/2013/TT-NHNN dated December 31, 2013 of the Governor of the State Bank of Vietnam on the determination, provision, management, and utilization of risk reserve funds of the State Bank of Vietnam.

Deputy Prime Ministers (for comments);