SBV to increase gold bar supply to stabilise domestic market

SBV to increase gold bar supply to stabilise domestic market, Illustrative image (Photo: VNA)

Hanoi - The State Bank of Vietnam (SBV) will increase the supply of gold bullion to handle the existing huge difference in domestic and world gold prices, SBV Deputy Governor Pham Thanh Ha told the press on April 12.

This is one of the bold solutions raised by the SBV after Prime Minister Pham Minh Chinh asked for prompt efforts to be taken to stabilise the domestic gold market, ensuring its transparent, healthy and efficient operation.

For the gold jewellery segment, the SBV will strive to ensure raw materials for production and export.

In addition, the SBV will increase cooperation with relevant ministries and agencies to ask enterprises to issue e-invoices for every transaction which will help improve transparency of the domestic gold market as well as the management efficiency, Ha said.

The supervision will also be enhanced to prevent smuggling of gold, speculation and gold price manipulation.

Inspection on the gold business of enterprises and credit institutions will be carried out this month, he stressed.

The SBV has proposed amendments to Decree 24 on gold business management towards ensuring on-track development of the domestic gold market and efficiency in management.

The domestic gold prices have increased strongly recently to set new records, widening the gap with the global prices.

SJC gold prices were listed at 82.8 million VND (3,310 USD) for buying and 84.8 million VND for selling per tael at 3pm on April 12 to set new records, an increase 900,000 VND per tael compared to the April 11 trading session.

SJC gold buying prices have increased by 17.5 per cent and selling prices by 15.4 per cent since the beginning of this year.

At Bao Tin Minh Chau, plain gold rings are listed at 75.78 million VND for buying and 77.68 million VND per for selling per tael, an increase by 1.3 million VND per tael over April 11 closing.

On Kitco.com, gold spot price increased 1.17 per cent to 2,399.20 USD per tael as of 3.05pm (local time). The bullion hit an all-time high for an eighth straight session on April 9.

Bullion prices hit an all-time high for an eighth straight session on April 9 after softer-than-expected US producer prices data boosted hope for US rate cuts this year. Year on year, gold is up around 16 per cent as central banks are stocking gold, seeing gold as a safe haven during time of economic and international turmoil.

At a recent meeting about gold market, the PM asked the SBV to promptly implement solutions effectively manage the gold market, especially handling the existing huge gaps between SJC gold prices with the world prices.

The focus will be on ensuring supply of raw materials for the production and gold bullion and jewellery and increasing the export of gold jewellery.

The PM also asked inspections to be enhanced on gold business to prevent smuggling, speculation and price manipulation. Violations must be strictly handled.

State does not encourage gold bar trading: SBV The State does not encourage the trading of gold bars, protect their prices, nor accept too large differences between domestic and global gold prices, and between SJC and other types of gold bars, said Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu.