Quyết định 430/1997/QD-NH13

DECISION

RE: SWAP TRANSACTIONS BETWEEN THE STATE BANK AND COMMERCIAL BANKS

THE GOVERNOR OF THE STATE BANK

Pursuant to the Ordinance on the State Bank issued in conjunction with Order No. 37/LCT-HDNN8 dated 24 May 1990;
Pursuant to Decree No. 15/CP of the Government dated 2 March 1993 on the Duties, Functions and Responsibilities of State Management of Ministries and Ministerial-level Bodies;
Pursuant to the Regulations on Organisation and Operation of the Inter-bank Foreign Currency Market issued in conjunction with Decision No. 203-QD/NH13 of the Governor of the State Bank dated 20 September 1994;
At the proposal of the Director of the Department of Foreign Exchange Control, Director of the Department Economic Research and the Director of the Department of Transactions of the State Bank;

DECIDES

Article 1.

The State Bank shall carry out SWAP transactions with commercial banks which are members of the inter-bank foreign currency market for US Dollars/Vietnam Dong (and, if possible, other foreign currencies) for the terms of 2 weeks, 1 month, 2 months and 3 months. The standard number of days to be the basis of the calculation of SWAP rates shall be 30 days a month and 360 days a year.

Article 2.

The rate applicable to SWAP transaction shall be announced everyday by the Department of Transactions of the State Bank and shall be calculated on the following basis:

- The selling rate of foreign currency applicable to the State Bank shall be the spot buying rate of the State Bank on the date of signing contract;

- The rate of re-purchase of foreign currency from the State Bank shall be the rate determined on the basis of the above SPOT rate and the difference between the lending interest rate applicable to loan of capital re-allocation in Vietnamese Dong of the State Bank applied to commercial bank and LIBOR interest rate for US Dollars applicable to the same term of the last working day prior to the date of contract signing.

Article 3.

The formula for calculating the SWAP rates and points shall be as follows:

SWAP rate = SPOT rate + SWAP point

of which: SR = SPOT rate

LIRvnd = lending interest rate applicable to loan of capital re-allocation in Vietnamese Dong

DC = Days of the Contract

Article 4.

This Decision shall become effective from 25 December 1997.

Article 5.

The Director of the inter-bank foreign currency market, Director of the Department of Finance and Accounting, Director of the Department of Transactions of the State Bank, Director of the Department of Foreign Exchange Control, directors of branches of the State Bank of Vietnam in provinces and cities and General Directors (Directors) of commercial banks which are members of the inter-bank foreign currency market shall be responsible for implementing this Decision. The Director of the Department of Finance and Accounting shall be responsible for providing guidance on accounting work of this profession.