The VNFC proposes to set up gold exchange

The National Financial Supervisory Committee (VNFC) is scheduled to hold a discussion this week on the proposal for govenment approval’s of establishing local gold exchanges in 2011, said Le Xuan Nghia, Vice chairman of the committee December 18.

In other countries, gold is mainly kept in the country’s reserves and under control of the central banks while gold holdings of the public are negligible, Nghia said.

In Vietnam, the SBV only holds kilograms of gold while most of gold is held by the public, whose speculative behaviors often cause gold and dollar turbulences whenever gold prices are volatile, he added.

Therefore, the VNFC is mulling over proposing the Government to set up official gold exchanges in Hanoi and Ho Chi Minh City in order to fight “goldization” and “dollarization” in the economy.

The Gold exchangse are scheduled to issue gold deposits based on the volume of gold deposited by the banks and gold-trading firms, which will help restrict gold hoarding and physical gold trading to stabilize gold market.

Earlier state-run lender BIDV also sought permission from the government to form such a facility in Vietnam. – Stoxplus.com

Tags: Vietnam gold exchange