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No sign of gold issue

For recent changes in gold price, The Deputy Governor of State Bank Mr. Le Minh Hung said that there was no sign of gold issue domestic gold market, no sign of gold smuggling, the exchange rate and foreign currency market were stable



Bantin 18.9 (TN) - Khong con dau hieu sot vang.jpg
Picture: laodong.com.vn

According to Deputy Governor Mr. Le Minh Hung, the domestic gold market has fluctuated complicatedly was mainly because of the influences of the changes in the world gold price, derived from the two recent events. European Central Bank announced its decision to buy bonds to support the economy of the countries in Optimum Currency Area so that they can overcome the debt crisis; Sep 13th the Federal Reserve System announced the notification about the execution of loose monetary policy to support American economy and committed to maintain the interest rate at the lowest level until the middle of 2015.

Accordingly, prices of material, gold and gems have sharply increased. The domestic gold price increased quite quickly due to the changes in world gold price.

However, unlike previous phases, there was no sign of gold issue despite the sharp increase in the world gold price. The supplying capacity in the marker also increased because many investor and people had bought gold with the price of 42-43 million/tael. When the domestic gold price reached the expected level, they sold a great deal of gold to the market. Since last weekend, the domestic gold price has a tendency to decrease although the world gold price increased slightly.

There was no sign of gold issue as well as gold smuggling in the domestic market, thus, the exchange rate and foreign currency market were stable, which is also the top target when building and deploying Decree No. 24/2012/NĐ –CP by the Government to control gold business operation.

Deputy Governor Mr. Le Minh Hung also told that the State Bank deployed many measures to stabilize the gold market. Specifically, the State Bank promulgated the regulations to allow credit organizations that have difficulties in gold liquidity by gold loans. The State Banks also promulgated the regulations on organizing and controlling gold bar production to allow credit organizations and companies operating gold business to convert non-SJC into SJC gold bars and process distorted ones.

The State Bank had given written requests to units mentioned for the report and update of the exact number and kinds of gold bars in stock that need to be converted into SJC gold pieces.

Now, the State Bank continues to closely keep track of the changes in gold market and applies some proper methods so that the market become stable gradually and recommends people be calm when taking part in selling and buying gold to avoid unnecessary loss.

Source: Vietnam Government Portal

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