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Decision 210/qd-Nh7: Issued Regulations On The Management Of The Exchange Fund Of The State Bank

Original Language Title: Quyết định 208/QĐ-NH7: Ban hành Quy định về quản lý quỹ ngoại tệ của Ngân hàng Nhà nước

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STATE BANK
Numbers: 208/QĐ-NH7
THE SOCIALIST REPUBLIC OF VIETNAM.
Independence-Freedom-Happiness
Hanoi, July 26, 1995

A DECISION.

THE STATE BANK GOVERNOR.

Issued regulations on the State Bank ' s foreign currency fund management

GOVERNOR OF THE STATE BANK

The State Bank command base announced at the 37th/LCT-HNN8 order on 24 May 1990 by the President of the Council of State;

The Government of Decree No. 15 /CP on 2 March 1993 of the Government on the mission, powers, and responsibilities of the State Administration of the Ministry, the peer-to-peer authority;

Decision base 105-CT on 10-4-1991 by the Chairman of the Council of Ministers (now Prime Minister) on the establishment of the foreign currency regulatory reserve fund;

On the recommendation of the Chief of Foreign Exchange Management;

DECISION:

What? 1. It is accompanied by the decision "Regulations on the Management of the State Bank of the State Bank".

What? 2. The decision came into effect on 1 August 1995.

What? 3. The Governor ' s Office, the Chief of Foreign Exchange Management, the Economic Research, the Financial Accounting, State Bank Exchange Director, the chief of the relevant units in the Central Bank of the State of the Central State was responsible for the implementation of the decision. Hey, hey, hey.

RULES FOR FOREIGN FUND MANAGEMENT

STATE BANK

(Committee on the final decision of 208/QĐ-NH7 on 26-7-1995)

of the Governor of the Bank of the State of the State

I-General Regulations

What? 1. The Foreign Fund at the State Bank includes:

The Foreign Business Fund (including the foreign currency of the State Bank and other foreign sources sent at the State Bank).

The State Bank's centralized foreign currency fund is administered by the State Bank.

What? 2. Foreign Fund Management Principles:

Preserve the foreign currency.

Guaranteed payment.

Make a profit.

What? 3. The foreign currency fund is kept mostly in categories: USD, JPY, DEM, Fdr, BGBP, SFR, SDR and some other types of foreign currency. The percentage of the foreign currency in the Fund decided by the Governor.

What? 4. The facility determines the density of foreign currencies in the Fund:

4.1-The density of foreign currencies in the international payment structure of Vietnam (export payments, debt payments, government payment needs ...).

4.2-Trends of volatility in foreign currency markets.

4.3. -The economic stability, the politics of the countries that have the currency kept in the foreign bank ' s foreign currency fund.

What? 5. The standards of selecting the Bank to send or invest foreign currency, buy bonds issued by governments or international financial institutions:

5.1-Central bank option:

There's a big foreign currency reserve, on the list of major banks in the world.

There is a policy of free foreign exchange management.

5.2-Commercial bank selection:

There's a big deal.

Ranked in terms of the number of credit rating from AA back on the international financial market, according to the ranking of one of the two American companies that identified the most widely recognized number of credit rating systems: Moody Investor, Inc and Standard and Poors Co.

High deposit rate.

5.3-Selection of government bonds and international financial institutions.

The bonds are developed by governments with highly developed economies, or international organizations released and the player is ranked as high credit ratings.

The bonds issued with free foreign currency conversion.

Bonds are likely to be purchased easily on the international financial market.

High interest rates.

II-Regulation of foreign business fund management:

What? 6. Use:

Currency trading on the domestic foreign currency market is aimed at implementing the Central Bank's policy rate.

Foreign currency trading on the international currency market.

What? 7. The source of Vietnamese currency to buy foreign currency for the Foreign Business Fund is derived from the funds of the State Bank.

What? 8. Plan foreign currency reserves at the business fund:

The foreign currency at the business fund is decided by the Governor in each period (the rating does not account for foreign currency deposits at the State Bank of the credit organizations). The case of the Foreign Business Fund overlooks the regulation by the Governor that will transfer the foreign currency to the foreign currency regulatory fund.

What? 9. The foreign currency of the business fund only sends or short-term investments (for no more than a year), investment or deposits at each bank, as well as a quota of investment in each bank prescribed by the Governor in each of the periods.

III-Regulation of foreign currency regulation.

What? 10. The purpose of using the foreign currency fund:

10.1-Assurance of the value of Vietnam, the currency exchange rate and foreign currency market intervention in the country as needed.

10.2-Meet the government's foreign currency needs.

10.3-Business on the international financial market.

What? 11. The source of Vietnam's capital to buy foreign currency for the foreign currency fund is derived from the increased supply of the annual money supply plan that has been approved by the Government.

What? 12. The additional foreign currency for the Foreign Trade Fund bought from the foreign currency of the Business Fund, the Commercial Banks.

What? 13. A portion of the foreign currency fund's foreign currency is sent short at short-term banks or investments. The rest of the investment is long-term investment in the form: bank deposits, bonds or investment trusts, but the deadline is no more than five years. The selection of banks to send money or choice of government bonds, the International Organization, or the organizations to mandate investment by the Governor.

IV-Organization to execute

What? 14. -The foreign exchange administration is responsible:

14.1-Research proposes advocated, policy and foreign currency fund management measures by the State Bank.

14.2-Coordinated with Economic Research, International Relations and the Governor-General Programme envisage sending foreign currency at the banks, limiting the amount of foreign currency deposits, the type of government bonds and international organizations, the investment trust, the number of individual types. It's a lot of money

14.3-Unless the case has a sudden mutation, periodically every three months, the foreign exchange management in conjunction with the Governor-State Bank Exchange reassessed the bank deposits and limits each bank, the current reserve currency structure, The deadline for foreign currency deposits and bonds.

14.4-Staff to the Governor in: buy, sell foreign currency to the regulatory fund, foreign currency from the regulatory Fund under the Government order.

14.5-A monthly term reporting the Governor of the Foreign Office for Foreign Intelligence, three months on a general situation report on foreign currency reserves and at the same time sent to the related cases.

What? 15. The State Bank Exchange is responsible for implementing specific tasks on management and business of foreign currency in accordance with the Governor's regulation:

15.1-Purchase of the business fund on the domestic bank foreign currency market.

15.2-Do business foreign currency business on the international currency market.

15.3-Purchase of the foreign currency or bonds of the foreign currency regulation in the international market.

15.4-Open foreign and foreign currency accounts, implement the accounting accounting of the two existing funds.

15.5-The monthly term reports the Governor of the Money to Deposit Foreign Currency in each currency, each term, and the number of bonds issued by the organization that issue bonds and term limits. Simultaneously informed the Foreign Office of Foreign Affairs, the Economic Research case, the Financial Accounting Case.

What? 16. The Economic Research case is responsible for the construction of plans to provide money in which it is intended for additional foreign exchange goals for foreign currency regulation. Frequently in conjunction with the functions of tracking, monitoring the use of the Vietnamese currency for foreign currency purchases, ensuring the amount of money justified, in accordance with the goal of requiring the requirements of monetary policy in each period.

What? 17. The Coordination of International Relations is responsible for coordinating the provision of information relevant to the situation of reasonable banks, the currency situation that is associated with reserve management and consultation with the Foreign Exchange Management case during the drafting of the agenda. The Governor considers the decision.

What? 18. The Financial Accounting Case is responsible:

The accounting direction accounting for the operation of foreign currency funds in and outside the country.

Monitor, check out the State Bank ' s foreign currency fusion fund at the Exchange of Guarantees in accordance with the accounting capital funds at the Financial Accounting ./.

Updating

(signed)

Lê Châu