Commercial banks terminate pilot options in VND

The SBV Governor issued, on March 18, Document No. 1820/NHNN-QLNH to require commercial banks to terminate pilot VND option operations from March 23, 2009.

With the aim of facilitating commercial banks to apply more advanced banking operations in order to meet the customers’ demands and to match with Vietnam’s international integration, SBV has allowed several commercial banks to conduct pilot option operations in VND in recent years. Based on these operations, SBV will review the performance and move towards the development of a significant regulation related to option operations of commercial banks.

According to this Document, SBV is drafting a Circular on foreign exchange operations of commercial banks which are permitted to provide foreign exchange services presently. The Circular will provide guidelines in implementing Decree 160/2006/D-CP dated December 28, 2006 and replace Decision No. 1452/2004/QD-NHNN dated November 10, 2004.

Additionally, SBV requires commercial banks, which are allowed to conduct pilot options in VND, to terminate this operation from March 23, 2009.

However, VND options’ contracts signed before March 23, 2009 are allowed to be implemented as contracted.

sbv

>   Hopes moderate for dollar bond auction (20/03/2009)

>   Gold price skyrocketed to VND 19.9 million/tael (20/03/2009)

>   ADB funds expressway project (20/03/2009)

>   US$ government bonds: “interest rate of 4%... successful” (20/03/2009)

>   Five groups of commodities exempted from consumption tax (19/03/2009)

>   Shareholders’ meetings uncomfortable for banks (19/03/2009)

>   Banks need green loan guidelines (19/03/2009)

>   Consumers don’t bite on bank loan bait (18/03/2009)

>   No worries in US$ bond issuance: Expert (18/03/2009)

>   Exchange rate cannot please everyone (18/03/2009)