At the press conference on the implementation of the Banking tasks in 2024, talking about the issue of gold market management in the past year, Deputy Governor of the State Bank Dao Minh Tu said that regarding SJC gold as a monopoly, Decree 24 stipulates that the State has a monopoly on gold bar trading.
Specifically, according to Decree 24, the State has a monopoly on the production of gold bars, the export of raw gold and the import of raw gold to produce gold bars.
"Gold jewelry and gold art belong to the market, under the management of other ministries and branches in terms of the State. Gold bars are monopolized by the State. The State Bank represents the State in monopolizing the production and trading of gold bars. And we have chosen SJC as the brand name for gold bar trading," said Mr. Tu.
Talking about the role of SJC at the present time, although many experts believe that it is not necessary to maintain SJC gold or that it is time to open up many other types of gold trading.
However, the Deputy Governor said that whether SJC gold still has a monopoly or many other brands join the market, the ultimate goal is still to manage the gold market without negatively affecting the macro economy .
"In the coming time, the State Bank will be more drastic and decisive in its viewpoint of managing the gold bar market, because of its responsibility to 100 million people, not because of its responsibility to gold traders," Mr. Tu affirmed.
Press conference to deploy banking tasks 2024.
At the same time, Mr. Tu also said that the State does not protect gold and silver trading, especially gold bar trading, but only has policies to support essential areas of life.
The State always respects the people's right to store and trade gold bars. Although it does not encourage trading in gold bars, the State Bank does not discuss the prices of gold bar trading organizations.
But in return, the State Bank also does not accept the difference with the world gold price of more than 20 million VND as recently. It also does not accept SJC gold with some other forms of gold that differ by several million.
"Why is SJC gold more than 20 million VND/tael higher than world gold? Although world gold prices have increased somewhat, the fact that world gold prices increase by 1 while domestic gold prices increase by 3 is unacceptable. After the Prime Minister 's direction, the State Bank of Vietnam announced that it is ready to intervene when necessary, and the gold price immediately went down," Deputy Governor Dao Minh Tu emphasized.
Mr. Tu said that the issues will be considered when amending Decree 24 in the near future. The direction of the amendment will ensure both management and market-based nature. In the coming time, the State Bank will implement and seek public opinions.
Accordingly, in January 2024, the State Bank of Vietnam plans to submit to the Government a summary report on Decree 24, including proposals to amend and supplement a number of regulations on gold market management to suit the new market context.
Talking about the importance of Decree 24, Deputy Governor Dao Minh Tu emphasized that Decree 24 was issued more than 10 years ago and has played an extremely important role.
In particular, ensuring the biggest goal when being built as well as during the implementation process is to prevent the gold-ization of the economy, not letting the gold market affect the macro economy (interest rates, prices, exchange rates, etc.)
Mr. Dao Xuan Tuan, Director of the Foreign Exchange Management Department (State Bank) said: “Decree 24 issued in 2012 helps stabilize the macro economy, supports exchange rate management and implements monetary policy.
In fact, over the past 10 years as well as recently, although the gold price has fluctuated, the exchange rate has remained stable, and all activities of the banking industry are no longer affected by the gold market.
This is the basis to prove that the goal of Decree 24 has been basically achieved. Up to now, it is necessary to consider the new situation to make appropriate adjustments," Mr. Tuan emphasized.
At the same time, it is affirmed that it is the right time to re-evaluate the goals and policies of gold market management.
In response to suggestions to consider removing the gold bar monopoly mechanism, the State Bank of Vietnam (SBV) has consulted with experts, associations, ministries and sectors and has been assigned by the Government to prepare a report summarizing and evaluating the gold market management policy in January 2024 and submit it to the Government for approval to change the policy to suit the new situation.
State Bank of Vietnam is ready to implement intervention plans to stabilize the gold market.
Faced with strong fluctuations in international and domestic gold prices in recent days, both buying and selling gold trading volumes have increased slightly. However, the SJC gold bar market in general has not fluctuated abnormally, and there has been no phenomenon of people rushing to buy gold when gold prices increased as in the previous period.
Explaining the reason for the sharp increase in domestic SJC gold bar prices in recent days, the State Bank of Vietnam said it was mainly due to psychological factors due to the continuous increase in international gold prices. Therefore, on days when international gold prices fluctuate sharply, domestic SJC gold bar prices often increase at a faster rate.
Accordingly, the State Bank will continue to closely monitor developments in the gold market and be prepared to deploy intervention plans to stabilize the gold market. Given the complex and unpredictable developments in the international and domestic gold markets, the State Bank recommends that people be cautious in gold transactions .
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