Gold sales slow on trading halt threat

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Even as the world gold prices increased continuously and reached a record USD1,445 per ounce, domestic prices dropped sharply due to the Government's policy of stopping trading in gold bullion on the free market.

In the afternoon of March 8, the buying price was VND37.53 million  per tael and the precious metal was sold at VND37.60 million , a decrease of VND200,000 over previous rates. (One tael equals 1.2 ounces.)

Regarding the central bank's inspections, Nguyen Van Hung, deputy director of the State Bank of Vietnam 's Hanoi branch, said that his office was actively implementing the policy.

They were cooperating with the market management force to inspect foreign exchange counters in the city, he said.

While this was a normal activity for the central bank in recent times, it will be intensified in the coming days, Hung added.

The SBV branch in HCM City had also made a plan to closely inspect local foreign exchange counters that had shown signs of violating regulations, said deputy director Nguyen Hoang Minh.

The branch had already asked its head-office and the HCM City People's Committee to strictly punish money changers who did not have business licensces, Minh said.

Nguyen Quang Huy, director of the SBV's Foreign Exchange Department, said that the bank was working with authorised agencies to intensify its supervisory work to ensure that the market operates within the spirit of the Government's Resolution No 11 and the SBV's Directive No 11 that include measures to tame inflation.

A representative of the Ministry of Public Security also said that together with the central bank, police had begun inspecting gold and foreign currency trading nationwide since March 6.

All violations including accumulation or illegal trading in gold and foreign currencies will be punished strictly, he said.