Vietnam central bank allows 2 more banks to sell gold deposits

The State Bank of Vietnam, the country’s central bank, allowed 2 more commercial banks to sell gold deposits to intervene the local gold market on Oct 10 but it did not give the names yet, the local state-run online newspaper Tuoi Tre reported.

The two banks were also permitted to open their international gold trading accounts as a hedge for their domestic gold selling.

Domestic gold demand on Oct 10 fell to 8,000 taels/ day, the lowest level since the SJC and 5 selected banks sold gold deposits under the agreement by the SBV, said Nguyen Cong Tuong, Deputy Dead of Gold Trading Department of the SJC.

As local demand fell, the local gold price decreased by VND110,000/tael to VND43.29 million/tael despite an increase of global gold price to $1,663/ounce, up $25/ounce (or VND645,000/tael).

The local gold premium is now reduced to only VND1 million/tael, still a big distance from the target of VND400,000/tael set by the SBV.

Source Sophie/ News Writer/ StoxPlus

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

Posted by VBN on Oct 12 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