On May 20, 2014, the Government issued the Decree No. 50/2014/ND-CP on the management of State foreign exchange reserves, within that the State foreign exchange reserves are the assets in foreign exchange indicated in the sheet of currency balance of the State Bank including the official State foreign exchange reserves (the assets in foreign exchange under the State ownership that are under the direct management of the State Bank assigned by the Government);
Deposit in foreign currency and gold of credit institutions, foreign banks’ branches and the State treasury deposited at the State Bank and other foreign exchanges.
Official foreign exchange reserve management must guarantee principles: Preserving (preserve the safety of State foreign exchange reserves by complying with the structure, criteria, investment limit of foreign exchange reserves approved by the State);
Liquidity (the availability of foreign currency and gold to serve for managing the national monetary policy, the exchange rate and gold policy; intervening the foreign exchange market to ensure the international payment and meeting the urgent demand for foreign exchange of the State);
And profit (the positive difference between the total revenue and the investment expenses for the official foreign exchange reserves in the fiscal year).
The deposit in foreign currency and gold of the State Treasury, credit institutions and other sources of foreign exchanges must comply with the principles as ensuring the safety by complying with criteria, investment level of state foreign exchange reserves; meeting the demands on foreign exchanges of the State Treasury and credit institutions when necessary and liquidity.
Besides, Foreign currency permitted investing in State foreign exchange reserve is the free convertible foreign currency and other foreign currencies as agreed in bilateral and multilateral swap agreement signed among State Bank and central banks, international financial organizations.
This Decree takes effect on July 15, 2014 and replaces the Decision No. 86/1999/ND-CP dated August 30, 1999.
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