Decision No. 64/1999/QĐ-NHNN7 stipulates the method for announcing foreign exchange rates for Vietnamese dong against US dollars and other currencies in the interbank market, effective from February 26, 1999. This document replaces previous decisions and specifies methods of calculation and announcement of exchange rates to be used in transactions and taxation.
Scope of application
State Bank of Vietnam, credit institutions authorized to conduct foreign currency business, relevant state management agencies
Key points
- The State Bank of Vietnam shall announce the average transaction rate on the interbank foreign exchange market for Vietnamese dong against US dollars daily (Article 1).
- This rate is determined based on the actual average rate of the most recent trading day prior to announcement (Article 2).
- Credit institutions shall use the announced rate to determine buying and selling rates for foreign currencies (Point 1, Article 3).
- This rate applies in calculating export and import taxes and other activities related to official exchange rates previously used (Article 3).
- The State Bank of Vietnam shall announce the exchange rate of Vietnamese dong against other currencies on the 1st, 10th, and 20th of each month based on the US dollar rate (Point 3, Article 3)
🌐 Social impact of this document
- Enhance transparency in announcing foreign exchange rates.
- Provide credit institutions and enterprises with a basis for accurate foreign currency transactions.
- Simplify the management process of exchange rates, reduce risks associated with exchange rate fluctuations.
- May cause difficulties for those unfamiliar with the new calculation methods.
❓ Frequently asked questions
How does the State Bank of Vietnam announce foreign exchange rates?
Daily, the State Bank of Vietnam announces the average transaction rate on the interbank foreign exchange market for Vietnamese dong against US dollars.
In which activities is this rate used?
It is used to determine buying and selling rates for foreign currencies and calculate export and import taxes.
Must credit institutions comply with regulations regarding the announcement of exchange rates?
Yes, credit institutions authorized to conduct foreign currency business must comply and use the announced rate to determine buying and selling rates.
On which days does the State Bank of Vietnam announce the exchange rate of Vietnamese dong against other currencies?
The 1st, 10th, and 20th of each month.
Full text
DECISION
Announcing the foreign exchange rate of the Vietnamese Dong against foreign currencies
__________________
GOVERNOR OF THE STATE BANK
Pursuant to Law No. 01/1997/QH10 on the State Bank dated December 12, 1997 and Law No. 02/1997/QH10 on credit organizations dated December 12, 1997;
Pursuant to Decree No. 15/CP of March 2, 1993 issued by the Government regarding 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.
DECIDES:
Article 1: The State Bank shall daily announce the average transaction rate on the inter-bank foreign exchange market between the Vietnamese Dong and the US Dollar through mass media, replacing the official exchange rate and actual buying and selling rates in the inter-bank foreign exchange market.
Article 2: The average transaction rate on the inter-bank foreign exchange market announced by the State Bank daily is determined based on the actual average rate of the most recent trading day on the inter-bank foreign exchange market.
Article 3: The average transaction rate on the inter-bank foreign exchange market between the Vietnamese Dong and the US Dollar shall be applied for:
1. Serving as a basis for the General Directors of credit organizations authorized to conduct foreign currency business in determining buying and selling rates.
2. Calculating export tax and import tax.
3. Serving as a basis for the State Bank to announce exchange rates of the Vietnamese Dong against other foreign currencies applicable for calculating export tax and import tax on the first, tenth, and twentieth day of each month.
4. Application in other activities related to official exchange rates and actual buying and selling rates on the inter-bank market before this Decision according to state regulations.
Article 4: This Decision takes effect from February 26, 1999, replacing Decisions No. 205/QĐ-NH7 and No. 206/QĐ-NH7 issued by the Governor of the State Bank on September 20, 1994. All other provisions regarding exchange rates that conflict with this Decision are hereby abolished.
Article 5: The Director of the Office of the State Bank, the Director of the Foreign Exchange Management Department, heads of units under the central State Bank, Governors of provincial and municipal branches of the State Bank, Chairmen of management boards, and General Directors (Directors) of credit organizations authorized to conduct foreign currency business are responsible for implementing this Decision.
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