The decision on issuing the regulations organizations make the task of managing the State foreign exchange reserves _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ the GOVERNOR of the STATE BANK pursuant to the law the State Bank of Vietnam no. 01/1997/QH10 on 12/12/1997 pursuant to Decree No. 15/CP dated 03/03/1993 of the Government of the mission powers and responsibilities of the State management, ministerial bodies;

Pursuant to Decree No. 88/1999/ND-CP dated 30/8/1999 of the Government on the management of foreign reserves;

At the suggestion of the Director of the Foreign Exchange Management, decision: article 1. Attached to this decision "made the task of managing the State foreign exchange reserves".

Article 2. This decision has the effect after 15 days from the date of signing and replace the following decision of the Governor of the State Bank: decision No 208/QD-on NH7 26/7/1995 issued regulations on the management of the Exchange Fund of the Bank; Decision No. 216/QD-NH7 on 07/8/1995 issued regulations and the Bank's Gold Fund operating state; and regulations related to the management of foreign exchange reserves (foreign exchange reserve fund and fund stabilize the exchange rate and the price of gold) in foreign exchange management regulation of the State Bank abroad issued together with decision No. 372/1999/QD-NHNN13 on 20/10/1999.

Article 3. Office Manager, Director of the Foreign Exchange Management, Director of monetary policy, reducing the transaction manager, Director of financial accounting, Head Of controlling, Director of personnel and training, the heads of the relevant units in the State Bank is responsible for the implementation of this decision.

The REGULATIONS implement the duties of managing the State foreign exchange reserves _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (attached to decision No. 653 on 17/5/2001 of the Governor of the State Bank) Chapter 1 GENERAL PROVISIONS article 1. Scope this regulation rules: 1. The duty of the Board of the foreign exchange reserve management state (hereinafter referred to as "the Committee"), the Mission of the Service related functions and transaction at the Bank in the implementation of the duties of the Governor of the State Bank on Forex reserve management State were provisions in Conference No. 86/1999/ND-CP dated 30/8/1999 of the Government;

2. Some of the specific content of the Decree No. 88/1999/ND-CP dated 30/8/1999 of the Government on the management of foreign reserves.

Article 2. Principles for managing foreign exchange reserves to the State 1. Secure foreign exchange reserves under State bad or does kim, according to the accounting of the financial year;

2. Ensure the high liquidity available to meet foreign exchange needs as necessary;

3. through lucrative investment business.

Article 3. The foreign exchange reserve fund, Fund stabilize the exchange rate and the foreign exchange reserves of gold-the established State into two funds: the foreign exchange reserve fund and fund stabilize the exchange rate and the price of gold.

1. the foreign exchange reserve fund is used to guarantee the ability of the international payments, regulate foreign exchange stabilization fund source rates and gold prices as needed, make the investment business; advance to the State budget to meet the sudden foreign exchange needs of the State as determined by the Prime Minister.

2. Rate Stabilization Fund and the price of gold be used to intervene the exchange market and gold market in the country in order to stabilize the exchange rate and the price of gold according to the goal of monetary policy, regulate Forex resources with foreign exchange reserve fund when necessary and implement short-term investment profession.

Article 4. Construction, approval of the foreign exchange reserve level annual State building and the Prime Minister approved the State foreign exchange reserve levels expected of every year is done according to the following rules: 1. A base to build foreign exchange reserves level estimated annual State: a. implementation of balance of payments and expected for years plan b policy goals. the currency in the plan;

c. foreign exchange reserve Level State the minimum necessary to ensure the safety of international payment according to international practices;

d. the forecast exchange rate and domestic gold prices in the plan and the number of Forex necessary to intervene the foreign exchange market in the country.

2. Foreign Exchange Management, in coordination with monetary policy expected foreign reserves levels for the plan year under the procedure referred to in paragraph 1, article 19 of this policy to the Prime Minister for approval.

Chapter 2 MANAGING INVESTMENT ACTIVITIES FOREIGN RESERVE article 5. Professional Forex reserves investment of State 1. Foreign reserves are invested through the career service: a. Send foreign currencies and gold in and outside the country;

b. buy, sell foreign currencies and gold in foreign countries;

c. Buy, sell, receive, debt paper l/c securitized debt in foreign currency due to the Governments, foreign banks, monetary institutions or international banks release or bail.

2. The investment services other than the services referred to in Paragraph 1 of this article by the proposed transaction and the Governor approved according to the procedure referred to in paragraph 1, article 19 of this regulation to the Prime Minister.

Article 6. Building standards, limits the foreign exchange reserves investment in State 1. Six months or when necessary, foreign exchange management, in collaboration with the exchange revaluation criteria, limits the foreign exchange reserves investment in State of the States before, building standards and the new limit and the Governor decided to follow the process outlined in paragraph 1 Article 19 of this regulation, the following: a. the standard choice of partner organizations to invest foreign exchange reserves to the State;

b. foreign currency and gold, to limit investment in a partner organization;

c. l/c selection criteria, the paper received debt relief, debt securities in foreign currency to invest foreign exchange reserves to the State;

d. the rate of foreign investment in the votes, the paper received debt relief, debt securities in foreign currency of foreign reserves.

2. the Secretary of the Executive Committee directed the Service related functions and transaction implementation standards, limits the foreign exchange reserves investment of State according to the current age of the Governor of the State Bank.

Article 7. Build options, decide, execute the foreign exchange reserves investment in State 1. Investment projects of the State foreign exchange reserve is built on the basis of: a. the foreign exchange reserve fund structure and structure Stabilization Fund rates and gold price has been decided;

b. criteria for selecting partner organizations to invest; the investment limit in a partner organization; criteria for selecting recipients, debt paper, l/c securitized debt in foreign currency to invest foreign exchange reserves to the State; the rate of foreign investment in the votes, the paper received debt relief, debt securities in foreign currency of foreign reserves has been Governor decided.

2. Periodically 3 month or when needed, responsible for building the investment approach of the State foreign exchange reserve on the basis outlined in paragraph 1 of this article the Chief Executive to decide.

3. The Authority decided to invest.

a. Director of the Exchange are allowed to decide to make the investment worth the equivalent of under 20 million USD (twenty million u.s. dollars);

b. the Chief Executive decides the investments of equivalent value from 20 million USD (twenty million u.s. dollars).

4. Transaction is responsible for implementation of investment projects; follow investment to monthly or irregularly when market volatility report the Governor, Secretary of the Executive Committee and propose new tournament match.


5. Six months or when necessary, responsible for reviews of the implementation of the standards, the investment rate, limit stated in article 6 of this regulation. Coordination with foreign exchange management of building and tuning standards, limits, investment ratio to suit the actual situation to ensure safety and efficiency in the investment process.

Chapter 3 MANAGING the FOREIGN EXCHANGE RESERVE FUND article 8. The building, decided to Fund the foreign exchange reserves structure 1. The basis of building the structure of the foreign exchange reserve fund a. proportion of the currency used in payment of export and import of goods and services of Vietnam;

b. the proportion of currencies used in borrowing foreign debt operations of Vietnam;

c. the forecast trend rate fluctuation of foreign currency reserves, the price of gold in and outside the country;

d. trend volatility of some currencies in international reserves and international payments of the countries of the world.

2. the foreign exchange reserve fund structure includes: the ratio of reserves in foreign currency and in gold; currency and the rate of the currency, the rate of investment in the short term, medium term and long term.

3. Six months or when necessary, foreign exchange management, in collaboration with the Exchange to assess the structure of existing reserves and building Forex reserves Fund structure to suit the new situation, the Governor decided to follow the process outlined in paragraph 1 , Article 19 of this regulation.

4. In the event of fluctuations on the foreign exchange market and abroad, have a duty to report the Chief Executive, has announced to send foreign exchange management to consider, propose to adjust the structure of the foreign exchange reserve fund the Governor decided to follow the process outlined in paragraph 1 , Article 19 this regulation.

5. The Governor decided or authorized the Chief Executive to decide on the structure of the foreign exchange reserve fund in each period.

Article 9. The principle of the thing move the Forex foreign exchange transfers from reserve Funds to stabilize foreign exchange rates and the price of gold was done according to the following rules: 1. In the case of Foreign Exchange Stabilization Fund rates and the price of gold is not enough to meet the requirements of intervention, foreign exchange management proposed the foreign exchange transfer from the foreign exchange reserve fund to the General Fund rates and the price of gold and the Governor according to the process outlined in clause 1, article 19 of this policy to the Prime Minister for approval.

2. After approval by the Prime Minister, made the switch from the Forex foreign exchange reserve fund to stabilize the exchange rate and the price of gold according to the decision of the Governor of the State Bank.

Article 10. Advance from the foreign exchange reserve fund for State budget the advance from the foreign exchange reserve fund for State budget, track and recover the advance is done as follows: 1. Foreign Exchange Management on the draft decision of the Governor of the State Bank of the advance excerpts from the foreign exchange reserve fund for State budget the Governor signed issued when there full of legal base for the following: a. a decision of the Prime Minister about the advance from the foreign exchange reserve fund to the State budget.

b. the Ministry of Finance's Bank proposal State advance to the State budget;

2. Transaction advance excerpts from the foreign exchange reserve fund for State budget according to the decision of the Governor of the State Bank.

3. Transaction accounting, tracking and recovery of the advance account for the State budget.

Chapter 4 MANAGING EXCHANGE RATE STABILIZATION FUND and the GOLD PRICE article 11. The building, decided to Fund structure stabilized the exchange rate and the price of gold 1. The basis for the construction of the structure Funds stabilize the exchange rate and the price of gold: a. forecasting fluctuations and foreign exchange rate of the currency reserves;

b. the forecast gold prices fluctuations in and outside the country;

c. Types of foreign currency used to intervene.

2. The content of the structure Stabilization Fund rates and gold price include: reserve rate in foreign currency and in gold, the percentage of physical gold storage in water and sent abroad, currency and the rate of the currency, the rate of sending non-term and term (under 1 year).

3. Six months or when necessary, Service managed Forex Fund structure construction stabilize the exchange rate and the price of gold as chief operating decision maker.

Article 12. Export, import of the international gold standard 1. Based on the needs of the domestic gold market intervention, national security requirements, the Stabilization Fund rates and the price of gold, Forex management determines the volume of the international gold standard to export/import the Governor decided to follow the process outlined in clause 1, article 19 of this regulation.

2. Transaction made the import of gold by decision of the Governor of the State Bank and reports to perform with fellow Governors to send Chief and Executive Committee members.

Article 13. Build, make plans to intervene the foreign exchange market 1. State Bank made intervention in the foreign exchange market in the country through the career service: a. foreign exchange Purchase in Vietnam;

b. selling Forex currency Vietnam Dong.

2. Base rates and fluctuations in the price of gold in the country, the objective of monetary policy, exchange rate policy in each period, the foreign exchange management propose to intervene to buy or sell the foreign exchange Chief Executive.

3. The content of the option to buy or sell foreign exchange interventions including: time of currency intervention, intervention exchange rate or gold price intervention, the amount of foreign currency or gold, form of intervention intervention (spot, forward, swap and other Forex trading forms) and implementation partners to intervene.

4. the Executive Board approved the intervention to the Governor for approval.

5. Transaction execution methods of intervention and the report of the State Bank Governor and Chairman of the Executive Committee.

6. When there are fluctuations on the foreign exchange market and abroad, timely notification to the Secretary of the Board of the Council send Service Forex management situation of supply and demand of foreign currencies or gold, operational performance on the market to do the operating base and propose timely intervention.

Article 14. Operate the inter-bank foreign currency market 1. The Exchange is responsible for operation of the interbank currency market; Track the happenings on the rates and supply and demand relations of the market to propose the sale of exchange of State Bank Chief Operating decision maker.

2. Transaction is responsible for notifying Service Forex management Forex sales has bought or sold by the Bank to the State daily on the inter-bank foreign currency market to Foreign Exchange Management Service draft report the Governor sign the Prime Minister.

Article 15. Foreign Exchange transfer things from the Stabilization Fund rates and the price of gold to fund the foreign exchange reserves.

Late on 10 of the most months of each quarter, when Stabilization Fund rates and gold price in excess of the Fund has been approved by the Prime Minister, suggested the move Forex reserve exceeded to the foreign exchange reserve fund and implement the transfer of foreign background after it is approved by the Executive Board.

Chapter 5 the AUTHORITY MANAGING the STATE FOREIGN EXCHANGE RESERVES article 16. The content under the authority of the Prime Minister's decision: 1. The level of foreign exchange reserves to the State projected annually by the Governor of the State Bank;

2. Limits of Foreign Exchange Stabilization Fund rates and the price of gold;

3. Transfer from the foreign exchange reserve fund to stabilize exchange rates and gold prices as suggested by the Governor of the State Bank;


4. The advance from the foreign exchange reserve fund for State budget to meet unexpected urgent needs of the State by the Minister of finance;

5. The form, professional Forex reserve investment.

Article 17. The content under the authority of the Governor of the State Bank.

1. Decision making the advance excerpts from the foreign exchange reserve fund for State budget according to the decision of the Prime Minister;

2. decision on the import of gold standard in international foreign exchange reserves to the State;

3. decision options to intervene the foreign exchange market in the country;

4. Decide on the structure of the foreign exchange reserve fund;

5. The decision criteria, limits the foreign exchange reserves investment State;

6. Browse and submit the report to the authority referred to in Paragraph 2, article 21 of this regulation.

Article 18. The content under the authority of the Executive Board 1. Decide the structure of exchange rate stabilization Fund and the price of gold;

2. Decide on the structure of the foreign exchange reserve fund in each period according to the authorization of the Governor of the State Bank;

3. The decision of investment projects, investments of equivalent value from 20 million USD (twenty million u.s. dollars);

4. Decide on daily foreign currency purchases of the State Bank on the Interbank Forex market as stipulated in article 14 of this regulation;

5. Direct the Service related functions and transaction implementation standards, investment limits foreign reserve by the decision of the Governor of the State Bank;

6. Decides to transfer from the Stabilization Fund foreign exchange rates and the price of gold to fund the foreign exchange reserves in case of Foreign Exchange Stabilization Fund level rates and gold price crossed the limits that have been decided by the Prime Minister.

Article 19. The decision on the management of foreign exchange reserves to the State 1. With regard to the content of the approval authority or the decision of the Governor: Service related functions and prepare the contents according to the tasks as defined in this policy through the Executive Committee to the Governor for approval or decision.

2. for the content under the authority of the Chief Executive: The Service related functions and prepare the contents according to the tasks the Executive Board decisions.

Chapter 6 PROVIDES MODE INFORMATION and article 20 REPORT. Provide information providing information service of the management of the foreign reserves is done as follows: 1. monetary policy offers for Foreign Exchange Management: a. Late last month 25 days for each quarter: the estimated figures on the balance of payments made in the quarter and expected for the next quarter;

b. Late for work on the last of the early months of each of you: the data and the implementation of the actual balance of payments of the previous quarter, the whole industry and monetary statistics of the State Bank of the previous quarter;

c. most Late 20th November: estimated figures on the balance of payments made during the year and estimated for the year of the plan;

d. Late for October 2: data and implementation of realistic balance of payments, monetary figures and the whole industry of the State Bank of the year before.

2. The Exchange offers Forex management, monetary policy and Service Of control: a. Late for 5 days every month: data on foreign exchange reserves Fund and Stabilization Fund rates and gold price of the preceding month (according to the 01, 02, 03 and 04 attached);

b. daily, providing foreign exchange management data on the situation of operation on the inter-bank foreign currency market of the previous day and reviews type of foreign currency on the market.

3. The latest on April 20, the beginning of each you or when necessary, provide Forex management document reviews rated the Bank the previous quarter included: document reviews of the standard base (reviews of credit rating companies such as international : Moody's, Standard and poor's Investors or the Intemational Ban Credit Agency IBCA) and the documents of the international rating organizations listed above.

4. Foreign Exchange Management and pest control Service provides the necessary information about the State Forex reserve according to the requirements of internal control.

Article 21. Report mode 1. Forex management report the Governor and Chairman of the Executive Committee on the State of management of foreign exchange reserves to the State every month, quarter, year and projected for the years of planning (the send Service monetary policy, Service Of control) by the following deadlines: a Late on 10 July after most. for the reporting month;

b. Late for May 15, beginning the following quarter for quarterly reports;

c. Late on Jan. 25 for the following year's report for the year.

2. Every year or as necessary, foreign exchange management, coordination with monetary policy, financial accounting Services, building and process Governor approval process the authority according to the procedures in paragraph 1, article 19 of this regulation the following statements: a. "reported the implementation of the management of foreign exchange reserves to the State; the actual situation of using foreign exchange reserves to the State, "the Prime Minister (Ministry of Finance);

b. report the situation of the foreign exchange reserve volatility State "the Government and the Standing Committee of the National Assembly.

3. Late on Feb. 15 annually or upon request, the State Bank to the Prime Minister and the Committee of the National Assembly the reports referred to in Paragraph 2 of this Article.

Chapter 7 IMPLEMENTATION Article 22. The Executive Committee manages the foreign exchange reserves to the State 1. State Bank Governor founded the Board of management of the State foreign exchange reserve comprises 5 members: 1 leader State Bank was Chairman, Director General, foreign exchange management, Director of monetary policy, the Director and secretariat 1.

2. The Executive Committee has the function of: a. advise the Governor of the State Bank of the contents specified in article 16, article 17 of this regulation;

b. run the implementation of tasks on the management of foreign exchange reserves to the State as required by the Governor of the State Bank.

3. The tasks and activities of the Executive Committee by the Governor of the State Bank regulations.

Article 23. The responsibilities of the Service and transaction 1. Monetary policy, in cooperation with the relevant units of the supply amount each period for increasing foreign exchange reserve target State.

2. financial accounting Service responsible for specific guidelines the accounting state Forex reserve under two funds the Governor decided.

3. Transaction is responsible for: a. build internal management rules to implement foreign exchange reserve management state under requirements in this policy;

b. the Organization conducted the business accounting relating to the foreign exchange reserves to the State as required by the Governor of the State Bank.

4. Organization of training and hosted, in cooperation with the Foreign Exchange Management Bill decided to form the Board of the State foreign exchange reserve and policy activities of the Board of the State Bank Governor.

5. Service Of control responsible for periodically or irregularly checked the implementation of foreign exchange reserve management state of the Service, according to the tasks and the observance of the stipulated in Decree No. 88/1999/ND-CP dated 30/8/1999 of the Government on the management of foreign reserves and in this policy.

Article 24. The amendment, supplement this regulation by the State Bank Governor decided.