SBV permits five banks and JSC to sell gold to stabilise gold market

The State Bank of Vietnam (SBV) issued Circular No. 32/2011/TT-NHNN amending and supplementing some articles of Circular No. 11/2011/TT-QLNH dated April 29, 2011 of SBV governing terminations on mobilisation and lending of gold by credit institutions.
Under the new circular, a number of commercial banks that satisfy the central bank’s requirements will be taken for consideration of SBV to allow conversion of part of mobilised gold and gold storage into cash to supplement additional gold supply to the domestic gold market in order to narrow the difference between local and world gold prices.

At the same time, commercial banks will be allowed to open accounts in foreign countries to balance the hedging of gold price fluctuations. The opening and use of overseas gold accounts is only aimed to hedge the gold price volatility for the commercial banks.

Circular No. 32/2011/TT-NHNN has taken effect from the date of signing (Oct. 6, 2011).

VietBiz24.com reported that this morning, the State Bank of Vietnam permitted DongA Bank, Asia Commercial Bank, Techcombank, Eximbank and Sacombank together with Saigon Jewelry Company (SJC) to sell gold to stabilise the local gold prices.

All branches and transaction offices of these five banks throughout the country will be allowed to buy and sell gold to the people in the listed gold price of Saigon Jewelry Company. – Source: Vietbiz24.com

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

Posted by VBN on Oct 7 2011. Filed under Banking-Finance, Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry