VIE CB issued draft circular 2022/TT-NHNN amending and supplementing certain articles of circular 01/2014/TT-NHNN on organization/implementation of activities of management of state forex reserves; and also issued a related comparison table.
Follows VIE CB Nov. 2021 amended rules on transport of cash, papers, see #122663.
Amendments
For example, amend point dd to clause 1, article 3 in regards to anticipating the need for market intervention as well as for unexpected and urgent requests of the state.
Also amendment to point a of clauses 1, 2, article 4 re criteria for selection of investment partners; including criteria re selecting partners to deposit foreign currency and gold; and partners issuing securities and valuable papers in foreign currencies.
Further, foreign currency and gold trading partners; securities trading partners, valuable papers; securities depository partners, as well as valuable papers and gold.
Criteria for selecting partners to perform other state forex reserve management operations include: gold export and import partners; partners to convert gold bars into international standard gold and other partners to manage VIE CB's forex reserves.
Amend/supplement clauses 3, 4, article 5; i.e. forex management department shall add other forms of investment to the official forex reserve investment structure.
Also shall submit it to Governor for decision; exchange shall add another form of investment to official forex reserve investment plan on basis of Governor's decision.
Further Amendments
Amend/supplement article 6 (amended/supplemented in clause 3, article 1 of circular 01/2020/TT-NHNN) re complying with the official forex reserve investment structure.
Every 6 months, the forex management department shall, for example, assume prime responsibility for/coordinate with prescribed bodies to assess implementation situation.
Exchange is responsible for ensuring compliance with official forex reserve investment structure under the Governor's decision on the last working day of the month.
Amend/supplement clause 3, article 7 re forex reserve investment plan; as well as amend/supplement article 9 regarding the purchase and sale of foreign currency.
Also amend/supplement clause 1, article 14 re the forex reserve fund; amend/ supplement article 15 re intervention in the domestic market; as well as amend / supplement clauses 2 and 3, article 26 re principles of gold price determination.
Draft circular replaces and annuls certain other clauses, articles, as well as annexes.
Effectiveness
VIE CB did not specify a consultation end date nor a planned implementation date.
Jan. 2023 Draft Circular
On Jan. 5, 2023, VIE CB issued draft circular dated Dec. 29, 2022, amending and supplementing certain articles of circulars to implement task of managing state forex reserves after the establishment of the state foreign exchange reserve administration.
Published circular merges circular 01/2014/TT-NHNN and circular 01/2020/TT-NHNN.
Draft circular should take effect when a decision is issued defining functions, tasks, powers, and organizational structure of state reserve management dept, see #156590.
Comments should be submitted to the department of foreign exchange management.
Aug. 2024 Promulgation
On Aug. 9, 2024, VIE CB, VIE GVT published circular 43/2024/TT-NHNN amending and supplementing certain articles of circular 01/2014/TT-NHNN, guiding the organization and implementation of state foreign exchange reserve management activities.
Implements the proposals detailed above, with effect from Sep. 23, 2024.
Document dated Aug. 9, 2024, received from VIE CB Aug. 12, summarized on Aug. 15.
