Quyết định 203/QĐ-NH13 năm 1994 về Quy chế chức và hoạt động của thị trường ngoại tệ liên Ngân hàng do Thống đốc Ngân hàng Nhà nước ban hành

DECISION

ON PROMULGATION OF THE STATUTE ON THE ORGANIZATION AND OPERATION OF THE FOREIGN EXCHANGE INTERBANK MARKET

THE GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Decree-Law of the State Bank of Vietnam issued in accordance with the ordinance No 37/TCT-HDNN8 dated 24 May, 1990.Based on the Decree 15/CP of the government dated 2 March, 1993 on the duties, rights and state management responsibilities of ministries and ministry level agencies.On the proposal by the director of the banking operation center of the State Bank of Vietnam.

DECIDES

Article 1.

To promulgate "the statute on the organization and operation of the foreign exchange inter bank market". In conjunction with this decision.

Article 2

This decision shall come into force from 1st October 1994.

Article 3.

The chairman of the foreign exchange inter bank market, head of the governor's office, director, director of the banking operation center of the State Bank of Vietnam, head of the foreign exchange control department, heads of the relevant units under the State Bank of Vietnam, directors of branches of the State Bank of Vietnam in cities and provinces, general director (directors) of credit institutions participating in the foreign exchange inter bank market are responsible for executing this decision.

STATUTE

ON THE ORGANIZATION AND OPERATION OF THE FOREIGN EXCHANGE INTERBANK MARKET

(Promulgated in connection with Decision No.203/QD-NH13 dated 20 September 1994 of  the governor of the State bank of Vietnam)

I. GENERAL PROVISION

Article 1. Function

The Foreign currency interbank market (here after referred to as the market) is organized and regulated by the State Bank of Vietnam and aimed at creating a organized foreign currency trading market among commercial banks authorized to do foreign currency trade and serves as the basis for establishing a fully functional foreign exchange market in Vietnam in compliance with the Decree-Laws on the State Bank of Vietnam.

Through the market, the State Bank will use the foreign exchange stabilization funds, in the capacity of a final buyer and seller, to intervene effectively in the market and thereby to further implement state's policies on moneys and exchange rates.

Article 2. Market membership

2.1. Head offices of the following credit institutions shall, when meeting requirements stipulated in article 3 of the present Statute be eligible for membership of the Market:

- State-owned commercial banks

- Bank for investment and development

- Commercial joint-stock banks

- Foreign bank branches operating in Vietnam

- Joint-venture banks between Vietnamese and foreign banks operating in Vietnam

2.2. Central State Bank

Article 3. Membership criteria

- Being banks authorized to do foreign currency trading

- Having internal information system suitably linked with the State Bank of Vietnam

Article 4. Market membership application procedure

Banks wishing to become market members shall fill up application (as per the form enclosed in Appendix 1 hereto attached) to be submitted to the State bank of Vietnam (Banking operations Center). Application must state clearly fax and phone numbers, and transactions-empowered persons; license for foreign currency trading business, and number of foreign currency account opened with Banking operations center of the State Bank.

After approving application, the Market chairperson shall issue respective membership attestation, and transaction code to each member.

Article 5. Rights and responsibilities of market members

5.1. Market members shall be entitled to buy, sell foreign currencies at the market in accordance with current mechanisms.

5.2. Members are responsible to duly implement the statute on the organization and operation of the foreign currency internal market as well as market internal rules.

II. CONCRETE PROVISIONS

Article 6. Transaction currency

- The currencies to be used in the market transactions shall be the following ones US dollar (USD), the Deutsche mark (DEM), the British pound (GBP), the French franc (FFR), the Japanese Yen (JPY), the Hong Kong dollar (HKD) and the Vietnamese dong (VND). For start-up operations, the transaction currencies shall be the US dollar (USD) and the Vietnamese dong (VND).

Article 7. Work schedule

The Market shall operate on every week workday along the following working hours:

- Morning: From 8.00 am to 11.00 am

- Afternoon: From 13.30 pm to 15.30 pm

Article 8. Volume of foreign currency transactions

Volume of each transaction in the market shall be at minimum of USD 50.000 or its equivalence in other foreign currencies. The volume of transactions must be rounded in tens of thousands.

Article 9. Forms of buying, selling

For the time being, the market shall implement Spot transactions, and in additions to it members also permitted to carry out Forward transactions.

Article 10. Exchange rates applicable on the Market.

10.1. Exchange rates applied to transactions effected among Market members shall be determined in transaction process based on State Bank official exchange rates and the fluctuation margins divided by the governor.

10.2. Based on daily-announced official exchange rates and the margins stipulated by the governor, the director of the State Bank banking operation center shall fix the buying and selling rates applied to transactions between the State bank and the Market members.

Article 11. Mode of transactions

Transactions among market members shall be effected through one of the following media: telephone, telex, fax or computer network.

Only persons who have been registered in the application shall be empowered to execute transactions through telephone.

When commencing transactions, the parties shall announce their codes so as they can be aware of their counterparts.

Commitments conducted via phone shall be irrevocable and unalterable.

After having conducted commitments by phone, before 3.00 pm of the same day, the trading parties shall serve related confirmation through one of the following communication media: telex, fax of computer network as per forms includes hereto in appendix II. When undertaken with the State Bank, such confirmation shall be addressed to the State Bank Banking operation Center.

Article 12. Order of price offers

At first, to offer buying and selling prices of a foreign currency in terms of Vietnam dong and then the amount desired, and after the trading is agreed upon, the settlement between the concerned parties shall be effected through account transfer among accounts opened with the State Bank or foreign banks.

Article 13. Deadline of settlement

13.1. Settlement of spot foreign exchange trading contract shall be effected within 2 business days from the transaction date (excluding holidays and Sundays)

13.2. Settlement of forward foreign exchange trading contract shall be effected on the scheduled time agreed upon between the two parties and specified in the contract.

The settlement date applicable to a forward transaction shall be determined by the settlement date of the similar spot transaction added with number of forward days. If the settlement date falls on a closing day, it shall be deferred to the following working day.

13.3. All spot or forward foreign exchange trading contracts shall be settled on the pledged time. Delayed settlement shall bear the fines as follows:

- Settlement in foreign currency shall be imposed a fine equal to 150% on LIBOR applicable to the transaction currency calculated on the number of delayed days.

- Settlement in VND shall be imposed a fine equal to 150% on State Bank loan interest calculated on the number of delayed days.

III. ORGANIZATION AND MANAGEMENT

Article 14.

- The State Bank shall be a market number, and at the same time, be in charge of market organization and management.

- The State Bank representative (a Deputy Governor) shall act as the Market chairperson.

- The market chairperson is the person directing all market activities. The Director of the State Banks Banking operation center shall be the direct manager and responsible to the market chairperson for:

+ Organic of Implementation of the Statute and of the market internal rules.

+ Based on the official exchange rate announced by the State Bank, fixing buying and selling rates served between the State Bank and Market numbers.

+ Compiling and reporting to the State Bank's Governor on Status of Market operation.

+ Gathering opinions of Market members, preparing and submitting to the Governor of the State Bank the points need to be amended or supplemented in this Statute (if necessary).

IV. IMPLEMENTATION PROVISION

Article 15:

All the market participants shall pledge to duly observe the provisions described in this Statute in case of violation, involved members shall be subject to penalties in cash or revocation of market membership License.

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