At present, there are not any legal documents regulating specifically the kind of freely convertible foreign currencies.
However, according to international practices, freely convertible foreign currencies are approved by a great number of countries. In other words, freely convertible foreign currencies can easily be exchanged with other currencies and recognized by the international market such as the U.S. dollars, Australian dollars, Singapore dollars, francs, yen, mark, and so on. There are many conditions for a currency to be
exchanged.However, according to the Bank for Foreign Trade of Vietnam in HCM City, freely convertible foreign currencies have three main conditions as follows:
- Being used for international payment.
- Taking part in transactions in the international monetary market, meaning their exchange rates must be quoted in the international monetary market.
- Being liberalized in investment (directly and indirectly). Therefore, freely convertible foreign currencies that can join the capital of limited liability companies are currencies that can be exchanged in Vietnam and the exchange rates are recognized by the State Bank of Vietnam.