Management, revenues and expenditures from gold auctions were precisely
handled pursuant to laws, announced the State Bank of Vietnam in an
attempt to counter the public’s doubts about the transparency of the
activities.
From March 28 to the end of last week,
the central bank already sold 1.611 million taels of gold (59,87 tonnes)
to the market through 61 auctions, generating 6.834 trillion VND
(323.28 million USD).
Without releasing the
percentage of total revenue going to the State’s budget, the central
bank affirmed that they fully complied with their legal obligations and
responsibilities.
“The State Bank doesn’t subsidise
or compensate for the losses of attendees. The auctions are bound to the
law so as to secure the State’s interest in this measure,” Nguyen Quang
Huy, head of the foreign exchange management said.
The central bank has established a team to carry out gold auctions with
members from various departments and offices under the agency to ensure
proper implementation and objectiveness.
In order to
prevent speculation and price manipulation, the SBV reviews the daily
reports from credit institutions and enterprises on their activities
related to gold auctions.
The latest updated
reports showed that 18 credit institutions were able to settle gold
deposits with the first 30 tonnes (equivalent to 50.1 percent of total
auctioned gold bars).
The remaining supply of gold,
around 29 tonnes, far below the range of 50-100 tonnes imported each
year, was sold on the market by the winning bidders.
The department has conducted regular inspections of the 2,500 licensed
retail points in the country to ensure prices are transparent and in
compliance with regulations.
The SBV also said banks
must keep a record of ID for clients who carry out gold transactions
worth more than 300 million VND (14,285 USD) under Government Decision
20/2013/QD-TTg, to prevent money laundering.
Responding to concerns that the pressure of gold auctions might add to
exchange rates and inflation, Huy said that the central bank’s market
management prevented such impacts and helped stabilise the macro
economy.-VNA