The State Bank’s Branch in Region 2 has just issued a document to credit institutions and economic organizations acting as foreign exchange agents in Ho Chi Minh City regarding the activities of these foreign exchange agents.
Accordingly, the State Bank’s Branch in Region 2 requests that credit institutions authorize and sign agency contracts with enterprises that have foreign exchange counters, and continue to strengthen management solutions, inspection, supervision, and other measures to ensure that the operations of these counters comply with legal regulations.
Specifically, foreign exchange transaction venues must be equipped with essential tools, including telephones, fax machines, safes, publicly displayed exchange rate boards, and signage displaying the names of the authorizing credit institution and the foreign exchange agent. Economic organizations acting as foreign exchange agents are requested to strictly comply with the regulation of displaying signage with the names of the authorizing credit institution and the foreign exchange agent at the foreign exchange counter.
Foreign exchange agents are required to implement measures against dollarization and strictly prohibit illegal foreign exchange trading.
Adhere strictly to the regulation that foreign exchange agents can only buy foreign currency in cash and sell the purchased foreign currency in cash (except for the amount of foreign currency kept in the remaining fund) to the authorizing credit institution in accordance with the regulations on foreign exchange management and foreign exchange agency.
“Strictly prohibit illegal foreign exchange trading and effectively implement the Government and the State Bank’s policy against dollarization. Compliance with these regulations contributes to maintaining stability in the foreign exchange market, mitigating risks arising from the misuse of foreign currency, and ensuring compliance with legal regulations. These measures play a crucial role in stabilizing foreign exchange rates and the foreign exchange market,” the document from the State Bank’s Branch in Region 2 emphasized.
In case of detecting any signs of violation of legal regulations by foreign exchange agents, credit institutions shall take appropriate measures depending on the nature and severity of the violation.
According to the third draft decree on administrative sanctions in the monetary and banking fields, which is being consulted by the State Bank, the highest fine for violations related to foreign exchange trading between individuals or with unauthorized organizations is proposed to range from 80 to 100 million VND.
On May 27, the central exchange rate set by the State Bank was 24,935 VND/USD, a decrease of 5 VND compared to the previous day. Commercial banks are trading the dollar at around 25,740 VND/USD for buying and 26,100 VND/USD for selling, an increase of 10 VND from the previous day.
In the free market, exchange rates at foreign exchange points are trading at around 26,250 VND/USD for buying and 26,350 VND/USD for selling, an increase of 20 VND compared to the previous day.
Why Does the State Bank Prohibit Illegal USD Trading?
“In a bid to curb dollarization and illegal foreign exchange transactions, authorized currency exchange agencies are urged to uphold the government’s anti-dollarization policies. It is imperative that these agencies operate within the confines of the law and refrain from engaging in any illicit activities.”
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