Draft decree on gold management completed, SBV says

The State Bank of Vietnam (SBV), the country’s central bank has finished the draft of new decree on gold business which will be under consideration of related agencies, banks, sectors and enterprises within this month, according to the SBV Deputy Governor Nguyen Van Binh was quoted as saying.

After that, the draft will be submitted to Prime Minister for approval in the second quarter. The Deputy Governor added, the content of draft decree will keep track on direction of Conclusion 02 of Ministry of Finance as well as the government’s Resolution No 11.

The news was included in the article “Tasks for the development period of 2011-2015” concerning on inflation restrain, macroeconomic stabilization, ensuring social security, innovation of growth mode, economic restructure, which was posted on www.chinhphu.vn.

The draft decree aims to create a fundamental for more proper and convenient implementation of basic rights of people in operations related to foreign currencies and gold. Also it plans to set up a healthy and transparent environment for gold traders and producers.

Currently, the central bank has not detailed the method of managing gold market under new directions.

By the middle of March, a familiar source said that gold business management could be implemented in a one-way manner in which gold bar holders (if they want) will have to sell to the SBV or appointed wholesalers and they will have no chance to repurchase. With such a method, less gold bar will be in circulation in Vietnam and gold bar producers will be forced to stop or transform operations.

The one-way idea faced strong reactions of many gold traders and producers who are keeping a large number of gold bar. As a result, then the gold market became gloomy with lower prices and a narrower gap between domestic and global prices.

Meanwhile, some investors shifted to purchase jewelry with high gold content for storage.

The deputy governor also admitted not-good dissemination according to Vietnam Politburo’s guidance and the government’s Resolution No 11, triggering public concerns. – Vietbiz24

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