On 04th March 2013 the Prime Minister has promulgated Decision No. 16/2013/QĐ-TTg on on Vietnam state bank’s gold bar purchase and sale in domestic market.
Accordingly, the Decision amends Vietnam state bank’s gold bar transaction with credit organizations and enterprises permitted to operate gold trading. Based on its monetary policies in each period, the Vietnam state bank would buy or sell gold bar in order to intervene, to stabilize the local gold market and to provide supplemental gold bars to the State foreign reserves. The Vietnam state bank would carry out trading gold bar with permitted credit organizations and enterprises on the basis of trading schemes in each period. As for gold bar purchase pricing in domestic market, the state bank is allowed to create accounts and operate gold trading via its overseas accounts in order to import gold to provide supplement to the foreign reserves of State or sell gold to foreign countries. In addition, the state bank is responsible for keeping the national foreign reserves safe by complying with the regulations of structure, standard investment terms and the national foreign reserves when making gold bar transaction.
At the same time the State Bank decided to apply the gold rate to convert into U.S. dollar and Vietnam dong in order to support accounting activities and reflect the fluctuation of exchange rates and gold prices in domestic and international markets. The State Bank would carry out accounting of expenses related to gold transaction, import and export and gold bar production into business expenses of the State Bank. The losses incurred in relation to the gold market intervention activities are handled in accordance with the financial regime of the State Bank.
About the State Bank’s gold bar trading, the decision clearly states that: State Bank’s gold bar transaction on purpose of intervening the local gold market in each period includes: the time of trading; volume of traded gold bar; terms of trading; partners; specific purchase and selling prices in accordance with particular form of purchase and sale under the provisions of Article 6 of this Decision.
The Decision expressly states it is on 05th March 2013. The State Bank is responsible for introducing and carrying out trading activities according to the regulations of the Decision. Ministers, Heads of ministerial-level agencies, heads of the Government-affiliated agencies, Chairmen of the People's Committees of provinces and Central-affiliated cities and the organizations and individuals concerned are responsible for implementing this Decision.
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