Thông tư 07/2012/TT-NHNN quy định về trạng thái ngoại tệ của tổ chức tín dụng chi nhánh ngân hàng nước ngoài do Ngân hàng Nhà nước Việt Nam ban hành

CIRCULAR

PROVIDING FOR THE FOREIGN CURRENCY POSITION OF CREDIT INSTITUTIONS, FOREIGN BANK'S BRANCHES

- Pursuant to the Law on the State Bank of Vietnam No.46/2010/QH12 dated 16 June 2010;

- Pursuant to the Law on Credit Institutions No.47/2010/QH12 dated 16 June 2010;

- Pursuant to the Ordinance on Foreign exchange No. 28/2005/PL-UBTVQH11 dated 13 December 2005;

- Pursuant to the Decree No. 160/2006/ND-CP dated 28 December 2006 of the Government on providing in details for the implementation of the Ordinance on Foreign exchange;

- Pursuant to the Decree No. 96/2008/ND-CP dated 26 August 2008 of the Government providing for the functions, duties, authorities and organizational structure of the State Bank of Vietnam;

- Upon the proposal of the Director of Foreign Exchange Control Department,

The State Bank of Vietnam hereby issues the Circular providing for the foreign currency position of credit institutions, foreign bank's branches operating in Vietnam, which are authorized to engage in foreign exchange activities.

Article 1. Subjects, scope of application

This Circular provides for the foreign currency position of credit institutions, foreign bank's branches operating in Vietnam, which are authorized to engage in foreign exchange activities.

Article 2. Interpretation

In this Circular, following terms shall be construed as follows:

1. Foreign currency shall mean the currency of another country, territory or the official currency of EU members or other composite currencies used in international and regional payment.

2. The original currency position of a foreign currency shall mean the difference between the Total Assets and Total Liabilities in this foreign currency, including respective off- balance commitments.

3. Exchange rate of foreign currency position shall be applied in line with following provisions:

a. Exchange rate between Vietnamese dong and US dollar: shall be the inter-bank average exchange rate as announced by the State Bank at the reporting date.

b. Exchange rate between Vietnamese dong and other foreign currencies: shall be the spot selling rate by transfer of credit institutions, foreign bank's branches at the end of the reporting date.

4. Foreign currency position of a credit institution, foreign bank's branch shall mean the original currency position of that foreign currency which is converted into Vietnamese dong at the position translation rate.

5. Total positive foreign currency position shall mean the total position of foreign currencies with positive position.

6. Total negative foreign currency position shall mean the total position of foreign currencies with negative position.

Article 3. Principles of calculating the foreign currency position

1. Foreign currency position of a credit institution, foreign bank's branch shall be determined at the end of a working day.

2. Original currency position of a foreign currency shall be calculated based on the balance of related accounts as provided for in the Appendix of this Circular.

3. Original currency position of each foreign currency shall be converted into Vietnamese dong at the position translation rate.

4. To add up the positive foreign currency positions for calculating the total positive foreign currency position; To add up the negative foreign currency positions for calculating the total negative foreign currency position.

Article 4. Limit of total foreign currency position

1. Limit of the total foreign currency position shall be calculated as the ratio between the total positive foreign currency position or total negative foreign currency position divided by the owner capital of the credit institution, foreign bank's branch.

Owner capital for calculating the limit of the total foreign currency position of a credit institution, foreign bank's branch shall be the owner capital of the month preceding the reporting month of that credit institution, foreign bank's branch.

2. Total day-end positive foreign currency position of a credit institution, foreign bank's branch shall not exceed 20% of the owner capital of that credit institution, foreign bank's branch.

3. Total day-end negative foreign currency position of a credit institution, foreign bank's branch shall not exceed 20% of the owner capital of that credit institution, foreign bank's branch.

4. Foreign bank's branches whose owner capital is USD 25 (twenty five) million and lower shall be permitted to apply the limit of total foreign currency position as follows:

Total day-end positive foreign currency position converted into US dollar shall not exceed USD 5 (five) million.

Total day-end negative foreign currency position converted into US dollar shall not exceed USD 5 (five) million.

5. Upon necessity, the credit institutions, foreign bank's branches shall be permitted to maintain their foreign currency position in excess of the limit as provided for in Paragraph 2, Paragraph 3 and Paragraph 4 of this Article if the approval of the Governor of the State Bank is obtained.

Article 5. Reporting regime

By 2.00pm of a working day at the latest, the credit institutions, foreign bank's branches shall send their report on foreign currency position of the previous working day to the State Bank of Vietnam (Foreign Exchange Control Department) in accordance with the form at the Appendix attached to this Circular.

Article 6. Implementation provisions

1. This Circular shall come into effect from 02 May 2012 and replace the Decision No.1081/2002/QD-NHNN dated 7 October 2002 of the Governor of the State Bank on issuance of the Regulation on foreign currency position applicable to credit institutions that are authorized to engage in foreign exchange activity, the Decision No.1168/2003/QD-NHNN dated 2 October 2003 of the Governor of the State Bank on the amendment of Article 1 of the Decision No. 1081/2002/QD-NHNN dated 7 October 2002.

2. The Finance - Accounting Department shall be responsible for giving instructions to the credit institutions, foreign bank's branches that are authorized to engage in foreign exchange activity on the method of calculating foreign currency position on the basis of the regulations on the system of accounts.

3. Within the scope of functions and duties, the Informatics Technology Department shall be responsible for giving instructions to the credit institutions, foreign bank's branches that are authorized to engage in foreign exchange activity on the reporting of foreign currency position for the case of reporting with electronic method.

4. Director of the Banking Inspection and Supervision Department, General Manager of State Bank's branches in provinces, cities under the central Government's management shall be responsible for inspecting, controlling and supervising the implementation of provisions of this Circular and dealing with any act of violation in accordance with provisions of applicable laws.

5. Director of the Administrative Department, Director of the Foreign Exchange Control Department and Head of units of the State Bank of Vietnam; Chairman of Board of Directors, Chairman of Board of Members, General Director (Director) of credit institutions, General Director (Director) of foreign bank's branches shall be responsible for the implementation of this Circular.

To: the Foreign Exchange Control Department - State Bank of Vietnam

Fax: 04.3.9343.468 or: 04.3.8.268.789, 04.3.9.367.692

REPORT ON THE DAILY FOREIGN CURRENCY POSITION

(Date… month… year)

(Form attached to the Circular No. 07/2012/TT-NHNN dated 20 March 2012)

Note:

* For other foreign currencies: Only foreign currencies with position to be of more than 1% of the owner capital shall be reported.

** For CIs, foreign bank's branches authorized to perform currency derivative transactions, to report the position arising from the performance of currency derivative transactions other than those that are reported in items 2, 5, 6 and 7 hereinabove.

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