Transactions on foreign exchange (forex) trading floors are illegal inVietnam and violators can face administrative fines of up to 100 millionVND, or 4,760 USD.
Nguyen Quang Huy, Director of the StateBank of Vietnam (SBV)'s foreign exchange management department,announced this on the central bank's website on March 16.
While the Government has set no specific regulations for suchtransactions, many organisations and individuals are taking part in theactivities via online accounts, he noted.
This way of tradingforex, including the trading of foreign currencies and gold, does nothelp to meet the domestic forex demand, but only gives rise tospeculations that are based on the continuously fluctuating exchangerates as well as the prices of commodities and gold in the globalmarket.
"The forex market is considered the mostunpredictable, with the most rapid fluctuations noted among thefinancial and monetary markets. It is highly sensitive to globaleconomic news, and thus, the potential risks are great," he claimed,adding that investors will not be protected by the law in case theyincur losses.
According to Ordinance No. 06/2013/UBTVQH13issued by the National Assembly's Standing Committee in March last year,the SBV is authorised to decide which credit institutions, foreign bankbranches, and other authorised organisations can deal in forex servicesin Vietnam and abroad.
Institutions and individualsinterested in carrying out foreign exchange activities other than spot,term, swap, and options transactions will have to seek permission fromthe Prime Minister and the SBV, the central bank stipulated.
The Government has assigned the central bank to co-ordinate with theMinistry of Public Security and people's committees to inspectviolations in banking and monetary areas. It has currently set fines of50-100 million VND, or 2,380-4,760 USD, for violators involved in forexand gold trading.
Some forex floors in Vietnam can be foundthrough a Google search, such as www.easy-forex.com,www.fxemvietnam.com, and www.fxpro-vn.com, but they lack informationabout the floor owners as well as website administrators.
Banking expert Nguyen Tri Hieu informed Lao Dong (Labour) online thattrading on forex floors is tricky. There are many forex trading floorsin the US, but floor owners must have the requisite licences from theauthorities, he added.-VNA
Nguyen Quang Huy, Director of the StateBank of Vietnam (SBV)'s foreign exchange management department,announced this on the central bank's website on March 16.
While the Government has set no specific regulations for suchtransactions, many organisations and individuals are taking part in theactivities via online accounts, he noted.
This way of tradingforex, including the trading of foreign currencies and gold, does nothelp to meet the domestic forex demand, but only gives rise tospeculations that are based on the continuously fluctuating exchangerates as well as the prices of commodities and gold in the globalmarket.
"The forex market is considered the mostunpredictable, with the most rapid fluctuations noted among thefinancial and monetary markets. It is highly sensitive to globaleconomic news, and thus, the potential risks are great," he claimed,adding that investors will not be protected by the law in case theyincur losses.
According to Ordinance No. 06/2013/UBTVQH13issued by the National Assembly's Standing Committee in March last year,the SBV is authorised to decide which credit institutions, foreign bankbranches, and other authorised organisations can deal in forex servicesin Vietnam and abroad.
Institutions and individualsinterested in carrying out foreign exchange activities other than spot,term, swap, and options transactions will have to seek permission fromthe Prime Minister and the SBV, the central bank stipulated.
The Government has assigned the central bank to co-ordinate with theMinistry of Public Security and people's committees to inspectviolations in banking and monetary areas. It has currently set fines of50-100 million VND, or 2,380-4,760 USD, for violators involved in forexand gold trading.
Some forex floors in Vietnam can be foundthrough a Google search, such as www.easy-forex.com,www.fxemvietnam.com, and www.fxpro-vn.com, but they lack informationabout the floor owners as well as website administrators.
Banking expert Nguyen Tri Hieu informed Lao Dong (Labour) online thattrading on forex floors is tricky. There are many forex trading floorsin the US, but floor owners must have the requisite licences from theauthorities, he added.-VNA
