State Bank meets to discuss finding a gold exchange model: In the immediate future, it will be a physical gold exchange, in the future there will be derivative products.

On the afternoon of October 15, the State Bank of Vietnam held a seminar on the establishment of a Gold Trading Floor in Vietnam. The purpose is to turn the gold trading floor into a channel to mobilize gold resources from the people, reduce gold hoarding, and convert it into investment resources for production and business.

This afternoon's discussion focused on the main contents: Current mechanisms and policies related to the establishment of gold trading floors (GTS); Expected main contents for establishing GTS in Vietnam; Referring to international experience on the model and operating mechanism of some gold trading floors in the world ; in-depth discussion on the issues of custody, inspection, settlement and effective technological solutions in establishing and operating GTS.

Mr. Dao Xuan Tuan, Director of Foreign Exchange Management Department (SBV).

According to Mr. Dao Xuan Tuan, Director of the Foreign Exchange Management Department (State Bank of Vietnam), there are 3 proposals for gold trading models in Vietnam, including: (1) Establishing a National Gold Trading Floor; (2) Allowing gold to be traded on the Commodity Exchange; (3) Establishing a Gold Trading Floor in the International Financial Center in Vietnam.

The plans to establish a gold trading floor in Vietnam all aim to create a gold trading center according to the roadmap and supporting infrastructure and technology (such as payment centers, storage facilities, etc.), gradually mobilizing gold resources from the people.

The first step will be a physical gold trading floor, becoming a channel for distributing imported raw gold that meets standards, ensuring transparency. Next is to gradually implement gold account and derivative products. The ultimate goal is to turn the gold trading floor into a channel to mobilize gold resources from the people, reduce gold hoarding, and convert them into investment resources for production and business.

The State Bank also acknowledged that there are many challenges to establishing a gold exchange in Vietnam, specifically: Vietnam is a country that uses gold on a large scale; gold is a valuable commodity, requiring a physical gold storage system to ensure security and account safety; Vietnam does not yet have a centralized gold storage system or a specialized gold testing center.

The pilot roadmap for establishing a Gold Exchange in Vietnam can be divided into 3 phases. Accordingly, phase 1 members include organizations providing gold exchange services, payment banks and trading members. Phases 2 and 3 will expand the exchange's membership. The State Bank has not announced the specific pilot time for each phase.

According to the State Bank, the research and consideration of establishing a Gold Trading Floor is a synchronous policy to perfect the institutions and market infrastructure under the direction of the General Secretary , the Prime Minister and competent authorities, in order to contribute to unblocking the source of gold among the people, making gold trading activities transparent, and strengthening the role of state management in the gold market.

In addition, the establishment and operation of the Gold Exchange will contribute to providing more transparent data for analysis, forecasting and policy making. Data from the gold exchange, when connected and processed promptly, will become a useful additional information channel to support policy making.

Deputy Governor of the State Bank of Vietnam Pham Tien Dung.

Sharing experiences and consulting on policies on the establishment and operation of Gold Exchanges in Vietnam is an important step in the process of perfecting the legal framework and operating mechanism for Gold Exchanges, ensuring that the pilot implementation is carried out on the principles of caution, with a roadmap, safety, transparency, and efficiency, contributing to stabilizing the gold market and the macro economy .

Deputy Governor Pham Tien Dung said that the research and consideration of establishing the SGDV is a synchronous policy to perfect the institutions and market infrastructure under the direction of the General Secretary, the Prime Minister and competent authorities, aiming to unblock the source of gold among the people, make gold trading transparent, limit the situation of uncontrolled free trading and strengthen the state management role in the gold market.

"In addition, the establishment and operation of the SGDV will contribute to providing more transparent data for analysis, forecasting and policy making; data from the gold exchange, when connected and processed promptly, will become a useful additional information channel to support policy making," the Deputy Governor affirmed.

Source: https://baodautu.vn/ngan-hang-nha-nuoc-hop-ban-tim-mo-hinh-san-vang-truoc-mat-la-san-vang-vat-chat-tuong-lai-co-san-pham-phai-sinh-d413629.html