Decision on Foreign Exchange Purchase and Sale, and Deposit Contracts
关于外汇买卖、存款合同的决定
ຂໍ້ຕົກລົງວ່າດ້ວຍ ສັນຍາຊື້ ຂາຍ ຝາກເງິນຕາຕ່າງປະເທດ
Summary
This regulation governs foreign currency purchase, sale, and deposit contracts between commercial banks and customers in Laos, standardizing forward exchange rates, interest rate contract types, and settlement rules.
Articles
Article ມາດຕາ 1
Article 2 Foreign Currency Purchase and Sale Forward Contract
A foreign currency purchase and sale forward contract is an agreement between the parties to the contract for the purchase and sale of a foreign currency against the Lao Kip at a spot exchange rate, and the parties must repurchase or sell the said foreign currency on the maturity date at the exchange rate or interest rate specified in the contract.
Article ມາດຕາ 2
Article 2 Interpretation of Terms
The terms used in this agreement have the following meanings:
1. Spot exchange rate means the exchange rate on the transaction date for buying and selling foreign currency;
2. Forward exchange rate means the exchange rate on a future date for buying and selling foreign currency;
3. Forward exchange rate differential means the difference between the forward exchange rate and the spot exchange rate;
4. Contract commencement date means the date on which the contracting parties agree on the mechanisms and conditions for conducting transactions of buying, selling, and depositing foreign currency between themselves;
5. Contract maturity date means the date on which the contract for buying, selling, and depositing foreign currency matures and must be settled, and the contracting parties must perform according to the mechanisms and conditions agreed upon on the contract commencement date;
6. Delivery date means the date on which the contracting parties must make payment as agreed upon on the contract commencement date and the contract maturity date.
Article ມາດຕາ 3
Article 4 Scope of Application
This agreement applies to internal departments, commercial banks and customers engaged in activities related to foreign currency purchase, sale and deposit contracts.
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