The State Bank of Vietnam (SBV) is gathering opinions from local banks and credit institutions on its draft circular on gold bar trading.
The circular stated that the SBV will stop gold bar trading in six months with credit facilities that can not ensure the quality of their gold or violate regulations. SBV will also temporarily stop its trading with facilities that are under special scrutiny.
The SBV will also cancel all trading with credit facilities that have been fined for administrative offences in currency and bank activities, been forced to finish trading or had their business licenses revoked. Those facilities will not be able to conduct trading for at least a year.
The circular also said only SJC 99.99pct gold bars will be used for trading and the parties will use spot transaction as the main trading method.
However, the SBV will need to test the gold bars before deciding to buy. If the gold bars have lower quality, the SBV will send notification and related documents to the facilities demanding the return of excess money within the next day.