SBV amends procedures of OMOs
Under the instruction of the Governor of the State Bank of Vietnam (SBV), the SBV Operations Center issued Document No. 10876/QT-NHNN on December 12 to amend Document No. 7477/QT-NHNN dated July 10, 2008 on the regulations of the open market operations (OMOs). This amended document took effect on December 12, 2008.
Following are the main points in the amended document:
In regard to Applications and Documents
In cases where credit institutions have violated the procedures, their OMOs membership certificates will cease to exist automatically. At the same time, SBV will cancel their transaction rights, identification member codes, and electronic signature codes.
Additionally, the duration for acceptance of OMOs membership from the date of the receipt of application is cut down to five working days as compared to the previous rule of ten working days.
In regard to Sequencing of OMOs transaction
If the repurchasing or payment dates of valuable papers fall on holidays, the payment and handing over of valuable papers will be made on the next working day. The payment and handing over of valuable papers between SBV and OMOs members will base on the “Notice of the auction results” and the attached appendix of “Contract of valuable papers repurchase”.
In regard to provision of information
Those OMOs members which fail to provide information as stipulated in Article 7 of Decision No. 01/2007/QD-NHNN on OMOs Regulations will be suspended for 1 month from the date of notice of violation issued by the SBV.
The SBV is responsible for providing OMOs members with information related to the auction of the money market operations, consolidated report of the open market operations and other issues as decided by the OMOs Executive Board.
OMOs members are required to provide the SBV with information related to the VND-denominated expected liquidity of the credit institutions, trading demand of valuable papers, trading of valuable papers among credit institutions and other issues as stipulated by the SBV.
The exchange of the aforesaid information shall be performed through the OMOs information page on a weekly basis.
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