HCM City banks hold about 91 tonnes of gold

Commercial banks in HCM City have about 91 tonne of gold, the local newspaper Phap Luat Thanh Pho Ho Chi Minh (HCM City Law) on September 21 quoted Tran Trong Quoc Khanh, Director of Asia Commercial Bank Gold Centre as saying.
Khanh said that as per the new rules of the central bank, banks are not be allowed to sell out gold, leading to no rotation of this gold. “I think that at first, the State Bank of Vietnam should immediately declare the parameters of this gold to bring down the domestic gold price closer to world prices. Besides, there is a need to use gold in the community to rotate the balance of import and export in the country. In special circumstances, a special mechanism should be applied to circulate capital,” Khanh said.

Khanh analysed that when allowing banks to sell 91 tonnes of gold in the market, the central bank should also allow banks to import gold to offset the amount of sold gold. This may help lower the price of local gold closer to the world price level. Maybe then, the waves on the world gold market will end, people may no longer be interested in gold again. “To me, this way is the most effective at this moment,” Khanh said.

Reportedly, Thanh Nien newspaper on August 11 cited the data of the central bank as saying that banks were holding more than 2.4 million taels (100 tonnes) of people in the form of savings.

Tags: vietnam gold, Vietnam gold market, Vietnam gold prices

Posted by VBN on Sep 21 2011. Filed under Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry