The State Bank of Vietnam (SBV), Ho Chi Minh City branch, has ordered the People’s Committees of districts and communes to coordinate with banking inspectors to increase supervision of businesses, especially jewelry traders, to prevent the illegal trading of foreign currency.

The extra management is aimed at ensuring that the trade, payment, or exchange of foreign currency are only conducted by licensed banks or agents in line with regulations.

Inspectors recently uncovered a number of organizations and individuals illegally trading foreign currency, especially jewelry stores, affecting foreign exchange rates and the foreign exchange market.

Violators will be strictly punished under the law, according to Deputy Director of the SBV’s Ho Chi Minh City branch Nguyen Duc Lenh.

He noted that individuals and businesses should only buy foreign currencies at credit institutions or branches of foreign banks and agents that are licensed to exchange or trade foreign currency.

For licensed agents, they are only allowed to use VND to buy foreign currency from individuals in cash but are not allowed to sell foreign currencies to individuals to obtain VND.