Decision No. 1198/2001/QD-NHNN of September 18, 2001, on the amendment of several provisions relating to the forward and swap transactions by credit institutions authorised to engage in foreign exchange activities

DECISION

ON THE AMENDMENT OF SEVERAL PROVISIONS RELATING TO THE FORWARD AND SWAP TRANSACTIONS BY CREDIT INSTITUTIONS AUTHORISED TO ENGAGE IN FOREIGN EXCHANGE ACTIVITIES

THE GOVERNOR OF THE STATE BANK

Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated 12 December, 1997 and the Law on Credit Institutions No. 02/1997/QH10 dated 12 December, 1997;
Pursuant to the Decree No. 15/CP dated 2 March, 1993 of the Government providing for the assignment, authority and responsibility for the State management of the Ministries and ministry-level agencies;
Upon proposal of the Director of the Foreign Exchange Control Department,

DECIDES

Article 1. To amend the Article 3 of the Decision No. 65/1999/QD-NHNN7 dated 25 February, 1999 of the Governor of the State Bank on the stipulation of the minimum maturity and maximum maturity of forward and swap transactions as follows:

Directors General (Directors) of credit institutions shall be permitted to engage in forward and swap transactions with following maturities:

1. The minimum maturity shall be 7 (seven) days from the date of entering into the transaction contract.

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Article 2. To amend Article 1 of the Decision No. 289/2000/QD-NHNN7 dated 30 August, 2000 of the Governor of the State Bank on the stipulation of the principle to determine the forward rates and swap rates by credit institutions authorised to engage in foreign exchange activities as follows:

1. For transactions between VND and US$: the maximum rate applied to each maturity shall not be more than the maximum spot exchange rate applicable at the time a forward, swap transaction contract is entered into, plus a permitted premium (a percentage of the maximum spot exchange rate) stipulated for each maturity as follows:

- For maturity from 7 days to 30 days 0.40%

- For maturity from 31 days to 120 days 1.50%

- For maturity from 121 days to 180 days 2.35%

Article 3. This Decision shall be effective from the date of signing. Previous provisions which are contrary to provisions of this Decision shall be repealed.

Forward and swap transaction contracts signed prior to effective date of this Decision shall not be governed by this Decision.

Article 4. The Director of the Administrative Department, the Director of the Foreign Exchange Control Department, Heads of units of the State Bank Head-office, General Managers of the State Bank branches in the provinces and cities under the central Governments management, Chairpersons and Directors General (Directors) of credit institutions authorised to engage in foreign exchange activities shall be responsible for the implementation of this Decision.

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THE GOVERNOR OF THE STATE BANK OF VIETNAM




Le Duc Thuy