The western world is the go-to place for forex trading.
Countries such as the US and UK sound like the reasonable and most attractive
to start trading currencies for most brokers. The logic behind that is these
countries in the west tend to have stable and big economies with a high income
per capita rate. Investing in the forex trading market is easier and more
accessible in these countries and there is a higher chance of profit.
On the other hand, traders who are into exploring and
experimenting go to the untested Asian waters. Trying their luck in the rising
economies of the East has turned its favor to smart brokers. Some Asian
countries that are making its mark in the forex trading market are the growing
economy of Vietnam. It is one of the enticing prospects of brokers exploring
Asia since its economy’s rapid growth in 2000.
The country of Vietnam has gone through some economic reforms to
open up its country to the global financial market. Some of these reforms
include their trades, investment enterprises, and overall financial services
and financial activities as a country. This has led to traders being interested
in forex trading Vietnam.
Although the country has gone through economic reforms, strict
policies and regulations are still implemented. Trading foreign currencies in
Vietnam is strict and much more complicated than other Asian countries. The
country has a lack of democracy in its court systems and they are
overprotective of their intellectual properties which is a hindrance to foreign
trade relations.
Economic reforms have not been enough to support a legal foreign
currency exchange in Vietnam. Despite their efforts to improve their financial
services, unfortunately, they still ban forex trading Vietnam. The reason for
this ban is the network of forex brokers in Asia, which includes Malaysia and
China who introduced harsh and severe measures in their forex regulating
bodies.
The Vietnamese government has also restricted foreign
investments because of the financial agencies that run with minimum
transparency and accountability. This affects the proper management of
financial accounts in the foreign currency trade market.
The regulating body of forex trading Vietnam is their central
bank, The State Bank of Vietnam. They aim to supervise monetary policies and
management facilities, maintain the financial stability of the country’s
economy, provide banknotes and facilities, and also to organize government-run
bond auctions.
People are encouraged to personally consult the State Bank of
Vietnam in finding legal forex brokers in the country for a limited foreign
exchange transaction.
According to the Director of the SBV, only those with
authorization from the SBV can carry out foreign exchange transactions. Local
organizations and individuals must comply with SBV rules with an authorized
credit institution. Other forex trading activities in the country must be
licensed and authorized by the Prime Minister and the State Bank of Vietnam.
Otherwise, penalties and sanctions are waiting for those carrying out illegal
foreign currency trade transactions that are not in compliance with the SBV’s
strict rules and regulations. Investors are also warned not to go into illegal
transactions as losses will not be covered by the law aside from the sanctions
that await the violators.
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