Vietnam central bank requests foreign banks to strictly follow forex trading regulations

The State Bank of Vietnam issued official document on Oct 3, requesting CEO (Director) of foreign banks’ branches and 100% foreign banks to strengthen self-checking activities to ensure their compliance to forex and gold trading regulations.

The local government issued new a Decree No.95/2011/ND-CP dated October 20 to set higher fines and added new punishment for those banks which violated foreign exchange and gold regulations to fight against dollarization and stabilize the local forex market. The SBV previously sent Official Dispatch No.8373 asking all credit institutions, branches of foreign banks to implement the new Decree.

The central said on its website on Nov 2 that it would perform inspection on foreign currency trading activities at some credit institutions as the agency was reported that there were some credit institutions and branches of foreign banks trading foreign currency above the regulated ceiling rates, adversely affecting the effectiveness of the new decree, the stability of the local market and the operations of credit institutions.

Source StoxPlus

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Nov 4 2011. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry