SBV responsible for balancing local and global gold prices

The State Bank of Vietnam (SBV) can use measures such as allowing gold import, selling reserved gold or strengthening the inspection in enterprises that have signs of speculations.

In a bid to balance the local and global gold prices, the State Bank of Vietnam (SBV) can use measures such as allowing gold import, selling reserved gold or strengthening the inspection in enterprises that have signs of speculations, the local online newspaper Vietbiz24.com quoted Le Xuan Nghia, vice chairman of the National Financial Supervisory Committee as saying on Wednesday.

Only the central bank can keep the equilibrium between the domestic gold price and the world counterpart, according to Nghia.

However, Nghia added if the central bank uses the measure of allowing gold import to stabilize the local gold market, in the long term, it will cost more in foreign currencies, while selling reserved gold is also very difficult, because the amount of this special metal reserve is virtually at zero.

So he said, to contribute to the transparency and market stability, the central bank should conduct testing and dealing with enterprises that have signs of gold speculation in the market by narrowing the scope of business, or withdrawing the business license.

Basing on this test results, the central bank can pick up qualified and appropriate enterprises to regulate the market, Nghia said.

Source Vietbiz24

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

Posted by VBN on Sep 30 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