State Bank of Vietnam tightens forex trading oversight

Vietnam draws a lot of interest from retail Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term brokers lately as it is a strong economy and a large untapped market for them. Most of them still operate there just like they operate in China - through local IBs or through online marketing only however some are thinking of opening local branches, subject to regulatory limitations.

The State Bank of Vietnam (SBV) on Thursday requested foreign banks to strictly adhere to regulations on foreign currency trading activities.

Accordingly, general directors and directors at foreign banks’ branches or 100% foreign-invested banks have to observe current rules about local foreign currency management.

Document 8608/NHNN-QLNH issued by SBV says, “There are still a few foreign credit institutions and foreign banks’ branches having traded foreign currencies at Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term rates higher than the ceiling set by the central bank.”

“This badly affects the effectiveness of new policies, the stability of the foreign currency market as well as business activities of local lenders,” the document says.

To remedy the situation, banking inspection and supervision agencies will check foreign currency transactions with customers carried out via the inter-bank market at a number of foreign banks and branches.

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