Sun. Dec 22nd, 2024

The State Bank of Vietnam (SBV) has developed several measures to closely monitor and control the domestic gold-bullion market.

Beginning after the Tet (Lunar New Year) holiday, credit institutions
licensed to trade gold bullion will be required to determine whether
their branches and transaction offices have had difficulties in trading
gold bars.

The credit institutions are then obligated to inform the
central bank about these problems in writing so that the bank can solve
the issues promptly.

In addition, the SBV will allow licensed
institutions and enterprises to recast non-SJC bullion, converting them
into SJC gold bars. They will also be allowed to temporarily export
non-SBV bullion and import raw gold materials to produce SJC gold bars.

Earlier last year, the central bank decided that it would be the only
producer of gold bullion, and chose SJC as the national brand.

The
SBV has also encouraged commercial banks to negotiate with gold
depositors to buy their so that it can reduce the amount of physical
gold that the banks will have to pay back.

The central bank will
also continue granting gold-trading licenses to qualified banks and
enterprises, and will closely watch the domestic gold market to quickly
identify problems.

In an attempt to stabitise the gold market, the
SBV is drafting a circular that would allow it to interfere in the
market if necessary.-VNA

By vivian