Current dangerous consequences
The familiar foreign currency collection ring with bank employees was reported by Lao Dong Newspaper to have revived the alarm bells 3 years ago. Although a series of reports have exposed the phenomenon of bank employees joining hands to cooperate with underground economic forces, so far, the variations of this illegal behavior are still unpredictable.
Speaking to Lao Dong Newspaper, Associate Professor, Dr. Dang Ngoc Duc - Head of the Faculty of Finance - Banking, Dai Nam University commented: "The phenomenon of taking advantage of opportunities to buy foreign currency/USD from commercial banks (CMs) and then resell them on the free market is a violation of the law on foreign exchange management".
Regarding the consequences of the above foreign currency collection line, Mr. Duc said that the negative impact of this behavior will certainly reduce the effectiveness and increase the cost of regulating or intervening in exchange rates of the SBV. Depending on the scale, this behavior will increase virtual demand and speculation problems, while pushing the exchange rate up unreasonably.
According to the records, behind the person directly leading the group were also key "bosses" with connections to bank employees. The tour guide named Quang (character's name has been changed) revealed that there was a man who stood up to withdraw money to exchange USD, a person from a gold shop on Ha Trung street.
Accordingly, hundreds of thousands of USD exchanged in one day will be brought to a gold shop on Ha Trung Street, then sold to "a general house" - Quang said - located at 4 Ton Duc Thang.
Sharing about the above situation, Associate Professor, Dr. Dang Ngoc Duc said: "If the scale of activities of these ' chains' is large, the negative impact will be greater and will not stop at the 'virtual fever' of exchange rates. Reducing the effectiveness of monetary policy and intervening in exchange rate stability are direct and immediate impacts. While in the long term, it can depreciate VND and negatively impact the import sector".
"A gap" in regulations and benefits is clear
Regarding the familiarity between the head of the foreign currency exchange team and the bank staff, Associate Professor, Dr. Dang Ngoc Duc frankly acknowledged that when the NHTM staff participate in foreign currency trading activities, they will receive benefits, while there are no violations of the regulations. They still sell according to regulations, only because the buyer is not the right target or has no real need.
"This is a loophole in the law and regulations and this behavior of bank employees is an act of 'circumventing the law'. Commercial banks can know, but they cannot discipline or prohibit because in terms of form, bank employees are allowed to sell foreign currency by the State Bank. Not to mention, commercial banks operate for profit and also benefit from foreign currency sales" - Mr. Duc added.
As reported by Lao Dong Newspaper, another unnamed banking expert said that Article 5 of Circular 18/VBHN-NHNN of the SBV on the purchase and sale of foreign currency in cash by individuals to a credit institution has clearly stated:
"Vietnamese citizens are allowed to buy foreign currency in cash at credit institutions to meet the foreign currency needs specified in Clause 1, Article 2 of this Circular (Appeal: studying and treating abroad; Working, traveling, visiting abroad - PV) at the rate of 100 USD/1 person/day or other foreign currencies with equivalent value during the period of stay abroad of 10 days".
Although it is stipulated that each person changes the rate of 100 USD/person/day for 10 days, Clause 3, Article 5 of Circular 18 leaves the "door open" for credit institutions to sell beyond the level based on the ability to balance cash foreign currency sources to meet the foreign currency needs of individuals with the purpose of studying and treating abroad; Traveling, traveling, and visiting abroad.
Accordingly, the maximum amount of foreign currency in cash that individuals are allowed to bring abroad without having to declare to customs is 5,000 USD.
With the current case, the group of people recorded by Lao Dong Newspaper easily exchanged 5,000 USD/person at each bank.
Associate Professor, Dr. Duc shared that with the time and progress and integration of the Vietnamese financial system, people do not encounter any difficulties when traveling abroad, getting treatment, studying... having to use USD cash.
"Personally, I have children studying abroad, and for each semester of tuition payment, the school sends a request to the student/student account, I bring that request to commercial banks, banks sell and then transfer it directly to the school's account" - Associate Professor, Dr. Duc shared.
In order to prevent illegal foreign currency trading, Associate Professor, Dr. Dang Ngoc Duc proposed "only allowing the sale of foreign currency directly to tourists, not to tour guides or intermediary organizations.
Thus, it is either to continue selling to the right person who needs to buy, or to abolish the sale regime to people going abroad. This will limit the current problem of "money trafficking according to policies". Limit speculation and worship foreign currencies. Prevent the risk of Dollarization".
