Vietnam 2021 LICENSED CREDIT INSTITUTIONS ARE NOT ALLOWED TO CHARGE FOREIGN EXCHANGE TRANSACTION FEES

Date
2021-04-27 16:40
On March 16, 2021, the Prime Minister issues the Decision No. 10/2021/QD-TTg This content is prescribed in the Circular No. 02/2021/TT-NHNN on guiding forex transactions of licensed credit institutions in forex market dated March 31, 2021 of the State Bank of Vietnam.



Accordingly, types of foreign exchange transactions include: Spot foreign exchange transaction; Forward foreign exchange transaction; Foreign exchange swap transaction and foreign currency option transaction.



Licensed credit institutions are entitled to carry out the spot transactions and forward transactions with other organizations and individuals, and carry out spot transactions with non-residents.



Licensed credit institutions must stipulate foreign currencies used at credit institutions and the spot rate between Vietnam dong and other foreign currencies in transactions with customers at foreign exchange transaction locations of the licensed credit institutions and on their official websites.



Term of a forward transaction, forward transaction in swap transaction or option transaction shall be subject to both parties’ agreement. Particularly, term of aforward transaction, forward transaction in swap transaction between Vietnam dong and foreign currencies shall be 365 days since the trading date. Noticeably, licensed credit institutions are not allowed to charge transaction fees on foreign exchange transactions.
This Circular takes effect from May 17, 2021.