State Bank plans to auction 16,800 taels of SJC gold

Capital Security reported that the State Bank has just announced to credit institutions and businesses about the gold bar auction.

Accordingly, the bidding start time is 10:00 a.m. on April 22, 2024 (Monday).

The bidding location is at the State Foreign Exchange Reserve Management Department (SBV), No. 25, Ly Thuong Kiet, Hoan Kiem, Hanoi . The bidding form is price bidding.

The total volume of gold bars expected to be auctioned is 16,800 taels; the volume of gold bars in one transaction lot is 100 taels; the type of gold bars sold is SJC gold bars produced by the State Bank.

Finance - Banking - State Bank plans to auction 16,800 taels of SJC gold — State Bank to auction 16,800 taels of SJC gold

The deposit rate for credit institutions and enterprises participating in the bidding is 10% with the reference price to calculate the deposit value being 81.80 million VND/tael. The reference volume to calculate the deposit value is the expected bidding volume of each member.

The minimum bidding volume that a member is allowed to bid for is 14 lots (equivalent to 1,400 taels). The maximum bidding volume that a member is allowed to bid for is 20 lots (equivalent to 2,000 taels).

The State Bank stipulates the bidding price step is 10,000 VND/tael; The bidding volume step is 1 lot (100 taels).

Each bidding member is only allowed to register 01 minimum price equal to or higher than the floor price announced by the State Bank.

The State Bank also noted that in case the State Bank cannot buy gold from the international market because the partner does not supply enough gold to meet the State Bank's demand, the State Bank will decide to cancel the bidding results.

Credit institutions/enterprises participating in the bidding must meet all the conditions specified in Circular No. 06/2013/TT-NHNN dated March 12, 2013 of the Governor of the State Bank guiding the purchase and sale of gold bars in the domestic market of the State Bank of Vietnam ; Decision No. 563/QD-NHNN dated March 18, 2013 promulgating the Procedures for the purchase and sale of gold bars of the State Bank of Vietnam and related amendments and supplements.

According to information from the State Bank's leaders earlier, there are currently 15 credit institutions and businesses eligible to participate in the bidding.

According to the People's Public Security , the State Bank has previously completed preparations for the gold bar auction, aiming to increase the gold supply to the market, intervene promptly, and immediately handle the situation of high differences in domestic and international gold bar prices, ensuring the gold market operates safely, stably, healthily, openly, transparently and effectively, in accordance with the Prime Minister 's direction.

In addition, continue to provide information on incidents of smuggling and illegal transportation of gold across the border so that the State Bank can promptly grasp market information in order to develop effective gold market management plans.

Ministry of Finance, support the State Bank in carrying out customs clearance procedures for imported gold for bidding.

With the Ministry of Public Security, the State Bank of Vietnam requested the coordination of inspection, examination, law enforcement and relevant authorities to promptly implement measures as prescribed to strictly handle violations of the law related to the gold market and gold trading activities, especially acts of smuggling, manipulation, speculation, and pushing up the price of gold bars... At the same time, coordinate with the State Bank of Vietnam in organizing the bidding for SJC gold bars to ensure the bidding activities are safe and effective.

The State Bank also requested the Ministry of Industry and Trade to direct functional units to strengthen market management; promptly detect acts with signs of violations and provide information to competent authorities for strict handling in accordance with the law.

The State Bank of Vietnam has directed credit institutions and enterprises licensed to buy and sell gold bars to strictly implement relevant legal regulations and the Prime Minister's instructions to ensure the gold market operates safely, effectively, and in accordance with the law, without profiteering, speculation, manipulation, or price hikes.

KHANH LINH (t/h)

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