Decision No. 267/1998/QD-NHNN Regarding the Principles for Determining Foreign Exchange Buying and Selling Rates of Credit Institutions Authorized to Trade in Foreign Exchange

Pursuant to …;

Regarding the principle for setting foreign exchange buying and selling rates for credit institutions permitted to operate in foreign currency transactions
Credit institutions permitted to engage in foreign currency transactions are allowed to set the spot buying and selling rates of Vietnamese Dong against foreign currencies based on the following principles:

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the State Bank Law promulgated by the Chairman of the State Council under Decree No. 37/HĐNN8 dated May 24, 1990;

Pursuant to Decree No. 15/CP dated March 2, 1993 of the Government on the tasks, powers, and responsibilities for state management of Ministries and ministerial-level agencies;

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

Pursuant to …;

Article 1. The General Directors (Directors) of credit institutions permitted to conduct foreign currency transactions are authorized to set the spot buying and selling rates of Vietnamese Dong against foreign currencies according to the following principles:

1.1. For US Dollars: The maximum deviation from the official rate published daily by the Governor of the State Bank shall not exceed 7% (seven percent).

1.2. For other foreign currencies: Based on the exchange rate of that foreign currency with the US Dollar on the international market at the time of transaction, converted into Vietnamese Dong through the exchange rate between the US Dollar and Vietnamese Dong.

1.3. The difference between the buying rate and the selling rate shall be determined by the General Directors (Directors) of credit institutions.

Article 2. The General Directors (Directors) of credit institutions permitted to engage in forward foreign exchange transactions and swaps are authorized to set the buying and selling rates for forward and swap transactions between Vietnamese Dong and foreign currencies according to the following principles:

2.1. For US Dollars: The maximum deviation from the spot rate (official rate plus allowable spread) shall not exceed the allowable increase (percentage of the ceiling of the spot rate) for each specific term as follows:

Term up to less than one week: 0.19% Term from one week to less than two weeks: 0.38% Term from two weeks to less than three weeks: 0.57% Term from three weeks to less than four weeks: 0.82% Term from one month to less than two months: 1.64% Term from two months to less than three months: 2.45% Term from three months to less than four months: 3.25% Term from four months to less than five months: 4.05% Term from five months to less than six months: 4.84%

2.2. For other foreign currencies: To be determined by the General Directors (Directors) of credit institutions.

Article 3. Credit institutions permitted to engage in foreign exchange transactions may charge transaction fees (spot transaction fee, forward transaction fee, and swap fee), with the maximum transaction fee for each transaction being 0.05% of the transaction amount, but not exceeding 1,000,000 Vietnamese Dong (One million Vietnamese Dong).

Article 4. The buying and selling rates between Vietnamese Dong and foreign currencies of the State Bank Trading Department shall be set by the Governor of the State Bank based on the exchange rate policy for each period.

Article 5. This Decision takes effect from August 7, 1998, and replaces Decision No. 342/QĐ-NH7 dated October 13, 1997, Decision No. 16/1998/QĐ-NHNN7 dated January 10, 1998, and Decision No. 88/1998/QĐ-NHNN7 dated February 28, 1998 of the Governor of the State Bank.

Article 6. The Heads of the Governor's Office, the Director of the Foreign Exchange Management Department, the Heads of Departments and Bureaus related to the State Bank, the Director of the State Bank Trading Department, the Directors of State Bank Branches in provinces and cities, the General Directors, and Directors of credit institutions permitted to engage in foreign currency transactions are responsible for implementing this Decision./.