Per current regulations, foreign currency transactions by individuals and enterprises must comply with the law. For foreign currency purchases, residents need to approach authorized credit institutions to meet legitimate demands such as studying or seeking medical treatment abroad, business trips, tourism, paying fees, sending allowances to relatives overseas, inheritance transfers, emigration, and other lawful purposes.
Credit institutions are responsible for meeting the foreign currency demands of residents for legitimate and reasonable transactions within their foreign currency capacity. Residents must provide appropriate documents as per the credit institution’s guidelines to ensure the transaction’s legality and compliance.
Foreign currency sales are also subject to regulations. Specifically, residents with foreign currency in cash are entitled to sell it to authorized credit institutions or economic organizations permitted to act as foreign exchange agents. These agents can only use Vietnamese dong to buy foreign currency from individuals and cannot sell foreign currency cash to individuals for Vietnamese dong. Adherence to these regulations by authorized credit institutions, foreign exchange agents, and residents is of utmost importance.
Mr. Nguyen Duc Len, Deputy Director of the State Bank of Vietnam (SBV) – Ho Chi Minh City Branch 2, emphasized the significance of authorized credit institutions displaying signs indicating “Foreign Exchange Trading Points,” which would yield comprehensive benefits.
In Ho Chi Minh City, with over 2,500 units in its network of credit institutions (including head offices, branches, and transaction offices), most institutions (commercial banks) are licensed by the SBV for foreign exchange activities. This extensive network across the city’s districts offers residents convenient access to foreign currency transactions, ensuring both their needs and legal compliance. It also helps curb illegal foreign currency trading, contributing significantly to the central bank’s management objectives and macroeconomic stability.
The display of “Foreign Exchange Trading Point” signs by authorized credit institutions not only facilitates residents’ identification of legitimate foreign currency trading locations but also helps distinguish them from unauthorized and risky sources. Encouraging residents to transact only with licensed commercial banks and authorized foreign exchange agents fosters a culture of compliance and mitigates the risks associated with unregulated foreign currency trading.
Mr. Len highlighted the far-reaching impact of this simple measure, ensuring legal compliance, market discipline, and fostering proper foreign currency usage habits among residents and enterprises. It benefits the credit institutions themselves in terms of foreign exchange services and communication while also contributing to the economy through effective implementation of monetary and foreign exchange policies by the SBV.
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