On April 23, 2020, the Governor of the State Bank of Vietnam (SBV) issued Decision No. 759/QD-NHNN on a timed approval for Vietnam Joint Stock Commercial Bank for Investment and Development (BIDV) to conduct other foreign exchange operations. This Decision took effect from the date of signing.
Illustrated photo (source: internet)
Specifically, the SBV Governor has allowed BIDV, a bank established and operating under License No. 84/GP-NHNN dated April 23, 2012, to carry out a number of foreign exchange operations, namely:
Conducting forex forward trading and foreign currency swaps with foreign financial institutions with the aim of supporting the foreign exchange liquidity of BIDV;
Conducting forex forward trading and foreign currency swaps with foreign financial institutions with the aim of preventing and limiting risks for transactions that BIDV has concluded and implemented with authorized domestic customers and credit institutions.
Conducting foreign exchange call and put option transactions with foreign financial institutions with the purpose of preventing and limiting risks for transactions that BIDV has concluded and implemented with authorized domestic customers and credit institutions.
The Decision also clearly states that BIDV is required to formulate and be self-responsible for the substances of its internal regulations on its operational sequences and process of risk management for forex operations; only conducting forex activities after formulation of internal process; conducting forex operations in line with the formulated internal process and procedures. All transactions must be controlled in line with the applicable regulations on internal control and audit.
Moreover, when carrying out the above-mentioned foreign exchange operations, BIDV is required to comply with the applicable regulations on forex management and other relevant laws.
Le Hang