VIETNAM - Central Bank to Cut Foreign Exchange Postionof Credit Institutions to 20%: Draft Circular

by lexie Thu Nov 17, 2011 12:53 pm

November 17, 2011

Central Bank to Cut Foreign Exchange Postionof Credit Institutions to 20%: Draft Circular

The State Bank of Vietnam (SBV) on Nov 16 publicized the second draft circular on foreign exchange positions, lowering the foreign exchange position limit of credit institutions and branches of foreign banks at day end to 20%, instead of current level of 30%.

The foreign exchange position limit would be calculated by measuring the ratio of total foreign exchange positions to the institutions’ equity capital of the previous month, the second draft circulation stipulated.

Branches of foreign banks whose equity capital was recorded at above $25 million had to keep their day-end foreign exchange positions below $5 million.

In special cases, the Governor of the State Bank would consider allowing credit institutions to maintain their foreign exchange positions outside the regulated limits.

The second draft circular regulated that credit institutions submit reports on their foreign exchange positions to the central bank before 13:00 of the following day, instead of 11:00 in the first draft.

http://www.vietfinancenews.com/2011/11/central-bank-to-cut-foreign-exchange.html