Governor Giau: “ no gold scarcity”

The Governor of the State Bank of Vietnam, Nguyen Van Giau, confirmed that “ there is no gold scarcity in Vietnam and gold import is not yet urgent”, the local newswire Dan Tri reported in Vietnamse on September 30.

Giau admitted that it is difficult to foresee that world gold prices hit the current record high, and the local gold price is now VND500,000 /tael higher than the global ones but gold supply drain is not true.

“Local gold prices were so volatile in the past three days but gold dealers reported no supply shortage while gold demand was normal, and no one bought at the highest quoted price” Giau stressed.

Giau thinks there are speculative factor in high local gold prices and promises to investigate the case.

For these reasons, it is now not the time to import gold, stressing that “gold is not an essential goods, and any easy import policy will cause economic instability”, Giau says, questioning that “ what we import gold for if the spread between local and world gold prices are instable?”

Regarding to accelerating gold deposit interest rates, Giau said “in the world, it is rare to raise deposits in gold and it is likely that happens in Vietnam only. Currently, total deposits in gold are VND95 trillion equivalent”.

The State Bank of Vietnam has requested local commercial banks to report on gold lending from early September and will build up management measure on gold in long term, Giau said.

Gold deposit interest rates now stands at 1.5% in Vietnam. – Stoxplus/Dantri

Tags: vietnam gold, Vietnam gold market