State Bank scoffs at gold-hoarding rumours

November 24, 2010 | 10:54

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The State Bank of Vietnam refused to comment on Monday on rumours that 1,000 tonnes of gold, worth $45 billion, was being hoarded in private hands.

In response to inquiries from National Assembly deputies, State Bank Governor Nguyen Van Giau merely quoted State Bank and customs figures showing that Vietnam had imported 339.86 tonnes of gold since 1998 while exporting 268.86 tonnes.

However, the rumour began circulating among the public earlier this month when the National Financial Supervisory Committee made a statement that the Vietnamese people were holding 1,000 tonnes of gold.

"I can't imagine where or how somebody could come up with such a large volume, which would account for 45 per cent of gross domestic product," Giau commented in a recent interview with reporters. "If it were true, our population would be very rich, and income per capita would not be $1,200 per year."

"Excluding a certain amount of gold smuggled across the border, the public may now hold about 200 tonnes of gold, with a worth of $9 billion," estimated the general director of a major gold trading company who asked to have his name withheld.

According to Gold Fields Mineral Services, in the first nine months this year, Vietnam's demand for gold was about 74.3 tonnes.

Giau did deny a rumour that people were withdrawing deposits from banks to buy gold and US dollars, noting that total deposits on hand in the banking system in the first half of October had risen 0.64 per cent since the end of September.

The central bank was finalising methodology according to IMF guidelines to meet monetary and international balance of payment targets, and was working on setting up better financial indexes to support early monetary and financial forecasts, Giau told reporters.

Vietnam's gold trade since 1998

Year	Imported (tonnes)	Exported (tonnes)
1998	0.52	3.7
1999	0.53	6.7
2000	0.61	7.69
2001		7.57
2002	1.3	7.92
2003	15.38	7.35
2004	43.06	9.34
2005	8.32	9.43
2006	96.67	8.54
2007	58.01	12.18
2008	96.38	28.31
2009	12.21	87.25
Jan-Sept 2010	6.86	72.87
Total	339.86	268.86
	Source: State Bank of Vietnam