State does not encourage gold bar trading: SBV

January 03, 2024 | 16:25

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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.

State does not encourage gold bar trading: SBV, Gold bars (Photo: VNA)

Hanoi - 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.

Speaking at a press conference on January 3, Tu said that all of these issues will be considered in the upcoming amendments to Decree 24/2012/ND-CP issued in 2012 on the management of gold business activities that the central bank will seek public comments in the coming time.

Regarding a proposal to abolish the monopoly on SJC gold bars according to the provisions of Decree 24, he said that whether the SJC or many other gold brands exist, the ultimate goal is to stabilise the gold bar market, and ensure the interests of the country's 100 million people.

The interests of gold trading enterprises are very small, he said, adding that the State does not protect the prices of gold bars, but always respects people's right to buy, sell, preserve and store gold.

At the end of 2023, the domestic gold price fluctuated abnormally. Sometime, the domestic price was nearly 20 million VND (820 USD) a tael higher than the world price, and the difference between buying and selling prices was extended to 3 million VND a tael.

Therefore, on December 27, Prime Minister Pham Minh Chinh issued an official dispatch asking for measures to strengthen the management of the domestic gold market.

In order to develop the 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 market.

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