Central bank frees up gold imports

World prices topped $1,912 an ounce Tuesday before retreating to $1,895.

The central bank said it would recommend new measures to the government early next month in place the decade-old Decree 174 for managing the gold market to bring it under control.

The measures include stabilizing forex rates, licensing gold imports in time to prevent speculation, and mobilizing all available domestic gold reserves, both in banks and in the hand of the people.

All major gold traders will be allowed to import unlimited quantities of the precious metal to keep pace with demand.

The central bank will act as the sole producer of gold bullion or license a limited number of businesses, depending on the situation, and only allow a certain number of businesses and financial institutions to do gold trading so that it can keep a close eye on the market.

Enterprises wanting to make gold jewelry or use gold in art products need to obtain a license from the SBV, but not individuals, households, and cooperatives.

Organisations, individuals, and businesses wishing to buy or sell gold jewelry or art products will have to establish businesses meeting certain criteria to be spelled out in the a decree.

The central bank hoped that by directly stepping into the gold business, it could control the market better and prevent speculation.

Last month it announced quotas for import of five tonns of gold, but only around three tonns have been imported so far.

Domestic prices have continued to hit historic highs, rising VND1.15 million since last weekend, after global prices exceeded $1,890 an ounce Monday morning.

They remained higher than international prices by VND1.15 million to a tael.

Nguyen Ngoc Que Chi, general manager of Sacombank Jewelry Co, said sales Monday were 7,000-8,000 taels. Phu Nhuan Jewelry Co reported sales of 2,400 taels.