On March 16, 2020, the Governor of the State Bank of Vietnam (SBV) issued Decision No. 417/QD-NHNN on a timed approval for Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) to conduct other foreign exchange operations in the international market. The validity of this Decision is 2 years from the date of signing.
Specifically, the SBV Governor has allowed VietinBank, established and operating under License No. 142/GP-NHNN dated July 3, 2009, to carry out a number of foreign exchange operations in the international market, namely:
Conducting foreign currency swaps with foreign financial institutions in the international market with the aim of supporting the foreign exchange liquidity of VietinBank;
Conducting foreign currency futures transactions with foreign financial institutions in the international market for the purpose of preventing and limiting risks in the bank book of VietinBank.
Conducting foreign currency futures transactions, foreign currency swap transactions with foreign financial institutions in the international market for the purpose of preventing and limiting risks to future foreign currency trading contracts, foreign exchange transactions contracted and performed with authorized domestic credit institutions.
Conducting foreign exchange call and put option transactions with foreign financial institutions in the international market with the purpose of preventing and limiting risks for transactions that VietinBank has concluded and performed with authorized domestic customers and credit institutions.
The Decision states that VietinBank is responsible for carrying out the above-mentioned foreign exchange operations in accordance with the current regulations on foreign exchange management, the applicable laws and VietinBank's own regulations on professional procedures, risk management procedures for foreign exchange operations.
VA