FOREIGN CURRENCY CONVERSION PROCEDURES FOR PROJECTS GUARANTEED BY THE GOVERNMENT
On December 18, 2018, the State Bank of Vietnam issues the Circular No. 32/2018/TT-NHNN guiding the State Bank of Vietnam’s foreign currency conversion procedures for projects given the government undertakings to provide guarantee and assistance in foreign currency conversion.
Accordingly, foreign currency conversion procedures with regard to the foreign currency conversion guaranteed by the Government include 4 steps:
- Step 1: If the project enterprise/ investor is unable to carry out the foreign currency conversion on the market, within the time limit prescribed in the GGU shall determine and report the remaining VND amounts to be converted to the converting bank, accompanied by the invoice;
- Step 2: The converting bank shall send an official dispatch, accompanied by the invoice requesting the SBV to sell an amount of foreign currency equivalent to the determined remaining VND amount to be converted;
- Step 3: The SBV shall examine the invoice and relevant documents, and sell foreign currency derived from the Fund for exchange rate stabilization and gold market management to the converting bank;
- Step 4: The converting bank shall sell foreign currency and transfer foreign currency amounts to the account No. 2 or an overseas account of the project enterprise or the investor.
Besides, this Circular also prescribes the foreign currency conversion procedures with regard to foreign currency conversion assisted by the Government.
This Circular takes effect on February 01, 2019.
