THE STATE BANK OF VIETNAM
--------------
SOCIALIST REPUBLIC OF VIETNAM
Independence-Freedom-Happiness
-----------------
No. 504/QD-NHNN
Hanoi, March 7, 2008
DECISION
ON THE ISSUANCE OF SOME PROVISIONS RELATING TO FOREIGN CURRENCY TRANSACTION BY CREDIT INSTITUTIONS AUTHORISED TO ENGAGE IN FOREIGN EXCHANGE ACTIVITY
THE GOVERNOR OF THE STATE BANK
- Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated 12 December 1997; the Law on amendment, supplement of the Law on the State Bank of Vietnam No. 10/2003/QH11 dated 17 June 2003;
- Pursuant to the Law on Credit Institutions No. 02/1997/QH10 dated 12 December 1997; the Law on amendment, supplement of the Law on Credit Institutions No. 20/2004/QH11 dated 15 June 2004;
- Pursuant to the Decree No. 52/2003/ND-CP dated 19 May 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 the Foreign Exchange Control Department.
DECIDES:
Article 1.
The General Directors (Directors) of credit institutions authorised to engage in foreign exchange activity shall be permitted to determine the buying and selling rates for spot transaction between Vietnamese Dong and foreign currencies under the following principles:
1. For US$: the maximum exchange rate shall not exceed +1% (one per cent) of the average exchange rate in the inter-bank foreign currency market applicable to the transaction date, announced by the State Bank.
2. For other foreign currencies: The exchange rate shall be determined by the General Directors (Directors) of credit institutions authorised to engage in foreign exchange activity.
3. The General Directors (Directors) of credit institutions authorised to engage in foreign exchange activity shall determine the difference between the buying and selling rates.
Article 2. This Decision shall be effective from 10 March 2008 and replace the Decision No. 3039/QD-NHNN dated 24 December 2007 of the Governor of the State Bank on the issuance of some provisions relating to foreign currency transaction by credit institutions authorized to engage in foreign exchange activity.
Article 3. Director of the Administrative Department, the Director of the Foreign Exchange Control Department, Heads of related units of the Central State Bank, General Managers of the State Bank branches in the provinces and cities under the central Governments management, Chairman of the Board of Directors and General Directors (Directors) of credit institutions authorised to engage in foreign exchange activity shall be responsible for the implementation of this Decision.
 
 
THE GOVERNOR OF THE STATE BANK OF VIETNAM


Nguyen Van Giau