State Bank empowered to stabilise gold prices

March 06, 2013 | 09:28

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The State Bank of Vietnam (SBV) has officially been allowed to trade gold bars in efforts to stabilise the local gold market and to stock gold bullion for the State foreign exchange reserve.

>> SBV: It’s not time to import gold

The permission was contained in Prime Minister Nguyen Tan Dung’s Decision 16/2013/QD-TTg, signed yesterday.

The decision states that the central bank governor will be in charge of deciding when it is necessary to intervene in the local gold market.

SBV Deputy Governor Le Minh Hung said interventions were intended to fight goldisation and protect gold owners and consumers.

Hung said it was the proper step to narrowing the domestic and global market price gap by putting forward measures in line with the resolution made by the National Assembly and Government.

The bank executive also made it clear that the move will help ensure the stable market in the long run and that any intervention by the SBV will not be for profit.

QĐND

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