|
SBV to tighten foreign currency exchange network
Many licensed foreign currency exchange points will no longer be operational, as the State Bank of Vietnam (SBV) has decided to narrow the network of foreign currency exchange points, while the points will only open at places where there are many foreign tourists.
Terminating contracts with operational exchange points
November 30 was the deadline for commercial banks to send a list of foreign currency exchange points that cannot meet the requirements for operation, under the new Decision No 21, to SBV.
Commercial banks will terminate the contracts signed before, with their foreign currency exchange points, to sign new contracts in accordance with the newly promulgated Decision No 21 on foreign currency exchange points management.
According to Nguyen Thi Minh Lan, Head of the Forex Management Division under the HCM City Branch of SBV, said that 600 exchange points received licenses for operation, and nearly all contracts have been terminated. Lan said that 30 exchange points have applied for licensing under the new regulation, but only nine have been licensed.
Decision No 21 does not set limitations on the subjects eligible to open foreign currency points, while allowing institutions of different economic sectors to serve as agents of foreign currency exchange for commercial banks.
However, the network of exchange points will be narrowed as the decision said that the exchange points mainly serve foreign tourists. The exchange agents will be located in places where there are many foreign travelers, such as hotels, international border gates and airlines’ booking agents, entertainment complexes reserved for foreigners, supermarts and shopping centers.
Currently, many gold shops in the areas, where there are few foreign tourists, have also received the license to operate as a foreign currency exchange agent for banks.
No license for gold shops
In the recent meeting organized by the HCM City People’s Committee, travel firms asked the central bank to allow them to keep their foreign currency exchange services, saying that the new regulation has badly affected travel firms’ business.
However, the central bank has not approved the proposal, saying that travel firms are not a subject that can collect money in foreign currencies. If they make transactions with foreign partners, they must pay in foreign currency transfers rather than in cash, while their travelers can already convert money at hotels, and not at travel firms.
Lan, from the HCM City Branch of SBV, said that most gold shops are not eligible to be licensed, since the gold shops are not all located in areas with many foreign tourists. Meanwhile, gold shops do not have separated counters reserved for foreign currency exchange as stipulated by the Decision 21, as gold trade and foreign currency exchange are both carried out on the same counters.
The central bank has announced that commercial banks will have to take responsibility for the foreign currency exchange points they authorize, threatening to impose heavy punishment on banks for banks’ agents violations. Therefore, bankers said that they will have to thoroughly consider those they select as agents.
Under the new regulation, a fine of VND 45-75 million will be imposed on the foreign currency exchange points that do not have a license granted by the State Bank of Vietnam.
Tuoi tre
|
