State Bank of Vietnam updates foreign currency transaction rules

The State Bank of Vietnam is refining draft amendments to Circular 26/2021/TT-NHNN to streamline foreign currency transactions between the central bank and credit institutions. Key changes focus on increasing operational flexibility and clarifying regulatory obligations.

A major adjustment involves the authority to sign foreign currency transaction requests. Moving away from rigid requirements for specific high-level titles, such as Deputy General Manager, the new proposal allows legal representatives or their authorized delegates to sign. This change follows feedback from various banks, including Eximbank, VietinBank, HDBank, Agribank, MB, ANZ Vietnam, BNP Paribas, UOB, and Standard Chartered, who sought more flexible authorization mechanisms that align with diverse corporate governance models.

The draft also addresses late payment penalties and reporting requirements. For foreign currency, late payments may incur a penalty of 150% of the overnight interest rate applied by the settlement agent bank. For Vietnamese Dong, the penalty is set at 150% of the overnight lending rate used in interbank electronic payments. Additionally, the draft specifies that credit institutions failing to submit reports correctly or on time three or more times within three consecutive months may face a three-month suspension of foreign currency transactions.