The State Bank of Ho Chi Minh City has proposed restricting the buying and selling of gold bars with cash when advising on amendments to regulations governing this market.
With domestic gold prices seemingly monopolizing the global market , many believe that Decree 24/2012/ND-CP on gold market management needs to be amended soon to better suit the current context, after more than a decade since its implementation. Accordingly, the State Bank of Vietnam's Ho Chi Minh City branch has recently put forward a series of proposals and recommendations related to amending regulations concerning the gold market, aiming to stabilize the price of this commodity.
Specifically, the State Bank of Ho Chi Minh City assessed that Government Decree 24/2012 on the management of gold trading activities has brought positive and important results to the monetary and foreign exchange markets, contributing to combating "dollarization" and "goldization" in the economy .
However, the State Bank of Ho Chi Minh City believes that this decree also reveals limitations such as the large daily difference between world and domestic prices, and therefore needs to be amended. This creates a certain psychological impact on the market, especially whenever the price of precious metals fluctuates sharply.
Transactions at a gold shop. (Photo: NLĐ)
One of the recommendations made by this unit to the State Bank of Vietnam is to implement policies restricting cash payments and transactions for gold bars. This aims to prevent risks arising in the business of gold dealers and combat money laundering. The branch also proposed a suitable management mechanism to avoid monopolies and vested interests among gold trading businesses that self-list prices.
In addition, the State Bank of Ho Chi Minh City also proposed regulations on the responsibilities of units involved in managing the gold market (including gold bars and the production and processing of gold jewelry and handicrafts). This includes strengthening inspection and supervision of the market, ensuring market discipline and order, as well as effectively controlling input materials and product quality.
Furthermore, strengthening inspection and supervision not only helps detect, prevent, and limit violations, but also provides a basis for amending and supplementing legal regulations in this field of activity.
Currently, Decree 24/2012/ND-CP stipulates that the State Bank of Vietnam manages the import and export of gold bars. However, since 2014, it has stopped granting import licenses for gold used in the production of gold bars, thus limiting the supply of raw gold. This has pushed the price of SJC gold up to 20 million VND/ounce higher than other brands at times.
Therefore, experts suggest amending Decree 24/2012/ND-CP to increase supply and eliminate the SJC gold bar brand monopoly; allowing the import of raw gold, especially for domestic gold jewelry manufacturing and trading businesses , to avoid collecting counterfeit goods.
According to Deputy Governor Dao Minh Tu, Decree 24/2012/ND-CP stipulates that the State Bank of Vietnam has a monopoly on gold bars, while gold jewelry and handicrafts belong to the market and are managed by relevant authorities. Therefore, the State Bank of Vietnam will reassess the current role of Decree 24/2012/ND-CP to see if it is still effective.
"Many experts also believe it's time to reconsider SJC gold bars compared to other types of gold and other brands. The ultimate goal must be to manage the gold market so as not to affect the macroeconomic economy and to ensure the rights of 100 million people," Deputy Governor Dao Minh Tu affirmed.
According to Thuy Linh / VTV.vn
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