PM orders prompt measures to stabilise domestic gold market

Customers make transactions at a Bao Tin Minh Chau gold shop. (Photo: VNA)

Hanoi – Prime Minister Pham Minh Chinh has signed to issue an official dispatch asking for measures to strengthen the management of the domestic gold market.

The official dispatch, sent to the Governor of the State Bank of Vietnam (SBV), the Ministers of Public Security, Industry and Trade, Finance, Justice, Information and Communications, and the Government Inspector General, highlighted the recent complicated developments of the market with strong fluctuations, affecting the whole financial and monetary market as well as social opinion.

In order to develop the gold market in a safe, healthy, effective and sustainable manner, the PM urged the SBV to keep a close eye on the developments of the world and domestic gold prices, and promptly deploy solutions to stabilise the gold market.

The bank was asked to prepare scenarios and plans to respond to fluctuations in the global and domestic gold prices, while using tools in a proper, effective and timely way, contributing to promoting socio-economic development, ensuring macro-economic stability and avoiding the goldenisation of the economy.

The Government leader stressed the need to take effective measures to manage and regulate the prices of gold bars following market principles, narrowing down the gap in global and domestic gold prices.

Meanwhile, it is necessary to increase the close and comprehensive inspection, examination and supervision of the gold market and activities of gold businesses and other stakeholders, thus discovering loopholes and dealing with violations, the PM underlined.

Along with reviewing the domestic market situation and state management of the market, the Government leader also asked for the review of legal framework regarding the management of the gold market as well as gold bar and jewelry business activities.

At the same time, it is crucial to provide official, open and transparent information about the orientations and policies on the management of the financial, monetary, foreign exchange and gold markets, reinforcing people’s confidence in the value of the national currency and creating social consensus, the PM stressed.

The leader also ordered relevant agencies to work with the SBV to immediately roll out measures to strictly handle violations, especially smuggling, manipulation and speculation, ensuring a stable, transparent, safe, healthy and effective domestic gold market.

Vietnamese gold demand shrinks in Q2 Demand for gold in Vietnam shrank 9 per cent in the second quarter this year compared to the same period last year, according to the World Gold Council’s latest report.