Proposal to restrict buying and selling gold bars in cash

The State Bank of Ho Chi Minh City has proposed restricting the buying and selling of gold bars in cash when consulting on amending regulations governing this market.

In the context of domestic gold prices being "alone in the market" with the world , many opinions suggest that Decree 24/2012/ND-CP on gold market management should be soon amended to suit the current context after more than ten years of the decree being in effect. Accordingly, the State Bank of Vietnam, Ho Chi Minh City branch, has just made a series of proposals and advice on amending regulations related to the gold market, in order to stabilize the price of this commodity.

Specifically, the State Bank of Ho Chi Minh City assessed that Decree 24/2012 of the Government on the management of gold trading activities has brought about positive and important results for the monetary and foreign exchange markets, contributing to the fight against "dollarization" and "goldenization" in the economy .

However, the State Bank of Ho Chi Minh City believes that this decree also reveals limitations such as the increasingly high gap between world and domestic prices, so it needs to be amended. This causes certain psychological factors to the market, especially when the price of precious metals fluctuates strongly.

Transaction at a gold shop. (Photo: NLĐ)

One of the contents that this unit recommended to the State Bank is to have a policy to limit payment and purchase of gold bars in cash. This is to prevent risks arising in the business of gold shops and to prevent money laundering. This branch also proposed to have a suitable management mechanism, avoiding monopoly and group interests with gold trading enterprises that self-list prices.

In addition, the State Bank of Ho Chi Minh City also proposed to regulate the responsibilities of units related to gold market management (including gold bars and production and processing of gold jewelry and fine art). In particular, it is necessary to strengthen inspection and examination of the market, ensure market discipline and order as well as control input materials and product quality.

In addition, strengthening inspection and examination work not only detects, prevents and limits violations, but also serves as a basis for amending and supplementing legal regulations in this field of activity.

Currently, Decree 24/2012/ND-CP stipulates that the State Bank manages the import and export of gold bars, but since 2014, it has not granted licenses to import gold for the production of gold bars, limiting the supply of raw gold. This has pushed the price of SJC gold to at times be 20 million VND/tael higher than other brands.

Therefore, experts believe that it is necessary to amend Decree 24/2012/ND-CP in the direction of increasing supply and removing the monopoly of the SJC gold bar brand; allowing the import of raw gold, especially for domestic gold jewelry manufacturing and trading enterprises to avoid collecting floating goods.

According to Deputy Governor Dao Minh Tu, Decree 24/2012/ND-CP stipulates that the State Bank has a monopoly on gold bars, while gold jewelry and fine art belong to the market and are managed by competent authorities. Therefore, the State Bank will re-evaluate the current role of Decree 24/2012/ND-CP to see if it is still effective.

"Many experts also believe that it is time to reconsider SJC gold bars compared to other types of gold and other brands. The ultimate goal to achieve is to manage the gold market so as not to affect the macro economy and ensure the rights of 100 million people," Deputy Governor Dao Minh Tu affirmed.

According to Thuy Linh / VTV.vn

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