State Bank of Vietnam works with Ho Chi Minh City to manage gold market
State Bank of Vietnam works with Ho Chi Minh City to manage gold market
The State Bank of Vietnam (SBV) on Sunday started working with the Ho Chi Minh City People’s Committee to take drastic action to manage the gold market and control gold prices in accordance with the prime minister’s directive.
The State Bank of Vietnam is stepping up efforts to regulate the gold market as prices soar. Photo: Ngoc Phuong / Tuoi Tre |
The move was aimed at eliminating potential manipulation and speculation on the domestic gold market.
To boost the efficiency in governing the gold market in the coming time, the SBV and the municipal administration agreed on several solutions, according to the central bank.
In particular, the city will team up with the central bank and other relevant agencies to closely and effectively manage the gold market and stabilize prices in line with prevailing regulations to prevent an upsurge of gold prices, manipulation, and speculation.
The municipal administration was requested to apply technology and optimize digitalization during their management process, while asking gold trading firms to issue e-invoices when buying or selling gold.
“The central bank will keep organizing auctions of gold bars to meet the demand of the local market,” said an SBV representative.
The SBV also advised residents to carefully trade gold amid uncertainties in prices in the global gold market and increased efforts in managing the domestic market.
Over the past few months, the prices of gold at Saigon Jewelry Company (SJC), the largest gold firm in Vietnam, have soared to new highs.
The price of SJC-branded gold bullion reached a peak of VND92.4 million (US$3,632) per tael on Friday last week, nearly VND20 million ($785) higher than the global price.
A tael is equivalent to 37.5 grams or 1.21 troy ounces.
The Government Office in Hanoi on Saturday issued an announcement on Deputy Prime Minister Le Minh Khai’s conclusion about a meeting centering around gold market management.
The deputy prime minister urged investigators to launch a probe into gold traders and producers in a bid to ensure stability in the local gold market.
Though the central bank adopted several measures to manage the gold market, the outcome was not positive, and gold prices continued to soar.
In addition, the gap in gold prices between Vietnam and the world remains wide, according to the announcement.
Therefore, the SBV was assigned to cooperate with multiple ministries and agencies to strictly manage the gold market in both short and long terms.
After the order, the prices of SJC gold bullion plunged.
SJC quoted a selling price at VND91.3 million ($3,588) per tael on Saturday, down VND1.1 million ($43.2) against the previous peak.
Expert Tran Duy Phuong predicted that with the determination from the government and the central bank, the prices of SJC-branded gold bullion could fall to VND84-85 million ($3,288 - $3,338) per tael shortly.
