STATE BANK OF VIETNAM
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SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
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No. 01/2007/QD-NHNN
Hanoi, January 05, 2007
 
DECISION
ON THE ISSUANCE OF THE REGULATION ON THE OPEN MARKET OPERATION
THE GOVERNOR OF THE STATE BANK
- Pursuant to the Law on the State Bank of Vietnam issued in 1997; the Law on the amendment, supplement of several articles of the Law on the State Bank of Vietnam issued in 2003;
- Pursuant to the Law on Credit Institutions issued in 1997; the Law on the amendment, supplement of several articles of the Law on Credit Institutions issued in 2004;
- Pursuant to the Decree No. 52/2003/ND-CP dated 19/5/2003 of the Government providing for the function, assignment, authority and organizational structure of the State Bank of Vietnam
Upon the proposal of the Director of Credit Department,
 
DECIDES:
Article 1. To issue in conjunction with this Decision the Regulation on open market operation.
Article 2. This Decision shall be effective after 15 days since its publication in the Official Gazette and replace the Decision No. 85/2000/QD-NHNN14 dated 09/3/2000 on the issuance of the Regulation on the open market operation, the Decision No.1439/2001/QD-NHNN dated 20/11/2001 on the amendment of several articles of the Regulation on the open market operation, the Decision No.877/2002/QD-NHNN dated 19/8/2002 on the amendment of Article 1 of the Decision No.1439/2001/QD-NHNN dated 20/11/2001, the Decision No.1085/2003/QD-NHNN dated 16/9/2003 on the amendment of, supplement to several articles of the Regulation on the open market operation issued in conjunction with the Decision No.85/2000/QD-NHNN14 dated 09/3/2000 and Paragraph 4 Article 1 of the Decision No.1439/2001/QD-NHNN dated 20/11/2001 of the Governor of the State Bank.
Article 3. Director of Administrative Department, Director of Credit Department, Director of the Banking Operation Department, Director of Monetary Policy Department, Heads of units of the State Bank, Chairpersons of the Board of Directors and the General Directors (Directors) of the credit institutions engaging in the open market operations shall be responsible for the implementation of this Decision.
 
 
FOR THE GOVERNOR OF THE STATE BANK OF VIETNAM
DEPUTY GOVERNOR


Nguyen Dong Tien
 
REGULATION
ON THE OPEN MARKET OPERATION
(Issued in conjunction with the Decision No.01/2007/QD-NHNN dated 05/01/2007 of the Governor of the State Bank)
Chapter I
GENERAL PROVISIONS
Article 1. Governed scope
This Regulation provides for the organization and performance of the open market operation at the State Bank.
Article 2. Interpretation
1. Open market operation shall be short-term sale, purchase of valuable papers by the State Bank with credit institutions.
2. Remaining period shall be the period of time from the sale, purchase of valuable papers through the open market operation to the maturity date of those valuable papers.
3. Time purchase means the purchase and receipt of the ownership to the valuable papers from a credit institution by the State Bank, at the same time the credit institution commits to re-purchase and take back the ownership to those valuable papers after a certain period of time.
4. Time sale means the sale and hand over of the ownership to the valuable papers by the State Bank to a credit institution, at the same time, the State Bank commits to re-purchase and take back the ownership to the valuable papers after a certain period of time.
5. Outright purchase shall be the purchase and receipt of ownership to the valuable papers by the State Bank from a credit institution without any commitment of resale of valuable papers enclosed.
6. Outright sale shall be the sale and hand over of ownership to the valuable papers by the State Bank to a credit institution without any commitment of re-purchase of valuable papers enclosed.
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