State Bank tightens provision of foreign exchange from credit organizations
VNGOP – To engage in providing foreign exchange in the domestic market, credit organizations must present their transactional process, strict measures to control risks and supervise transactions.
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Credit organizations licensed to provide foreign exchange services can mobilize capital, give loans and guarantees in foreign currencies |
The above requirement is stipulated in Circular 03/2008/TT-NHNN recently issued by the Governor of the State Bank.
Under the Circular, all transactional managers and supervisors are not allowed to engage in transactions.
The Circular also stipulates the transparency of products provided by credit organizations. It requires credit organizations to present full information about their foreign exchange products and services, especially risks.
Credits organizations must also design regulations on internal authorization in order to secure safe provision of foreign exchange.
All credit organizations licensed to engage in foreign exchange activities before the Circular’s date of coming into effect must change their licenses to confirmations or certificates on foreign exchange provision, within 12 months since the Circular’s date of coming into effect.
By Phương Uyên
