Deputy Governor Dao Minh Tu: It's time to consider whether or not there is a need for a monopoly on SJC gold

ANTD.VN - Deputy Governor of the State Bank Dao Minh Tu said that it is time to amend Decree 24 on the management of gold trading activities, including considering whether it is necessary to monopolize SJC gold bars.

At the press conference of the State Bank this morning, the State Bank's leader answered reporters of An ninh Thu do regarding the amendment of Decree 24 on the management of gold trading activities.

Regarding Decree 24, according to Mr. Dao Xuan Tuan, Director of the Foreign Exchange Management Department in 2012, the gold-ization situation has caused macroeconomic instability, therefore, the Government issued Decree 24, thereby contributing to macroeconomic stability.

Decree 24 has taken effect, accordingly, by the end of 2023, the gold price increased but the exchange rate was stable, and banking operations remained stable. However, over the past 10 years, conditions have changed, and many opinions have raised the question of whether it is time to return gold to the market.

“We consider this to be the right time to evaluate and summarize Decree 24. The Decree has been implemented for more than 10 years, and the press and many experts have mentioned it. The State Bank has also prepared and consulted with experts and associations. In the first quarter, it will submit to the Government the direction of change,” said Mr. Dao Xuan Tuan.

The State Bank representative also admitted that the management mechanism is no longer suitable. “Due to the influence of the new mechanism, this phenomenon has occurred (the price of SJC gold has fluctuated strongly in recent times – PV). When the market is revised, it will stabilize and this phenomenon will no longer occur,” he said.

Regarding the direction of amending the mechanism, Mr. Dao Xuan Tuan said that he will consider amending the gold bar management mechanism. As for gold jewelry and gold art, they are not the management target of the State Bank but will be self-regulated by the market.

State Bank Press Conference

Sharing more about this issue, Deputy Governor of the State Bank Dao Minh Tu said that the most important goal of Decree 24 is to prevent the goldification of the economy, to ensure that the gold market does not affect the macro economy, especially interest rates, exchange rates, foreign currencies, etc. This Decree has promoted and met that requirement.

“However, with more than 10 years, the Law still needs to be amended, let alone the Decree. Therefore, amending Decree 24 is necessary, it should have been amended earlier, but now it is somewhat untimely,” said Mr. Tu.

According to the leader of the State Bank, Decree 24 stipulates that the State has a monopoly on SJC gold, while jewelry gold and fine art gold are market-based and under the management of other ministries and sectors. But whether SJC gold still has its mission or not, whether it needs a monopoly or not, it is time to consider.

“Many experts recommend that there is no need to monopolize SJC gold, and that many other types should be introduced. But regardless of whether there are many types of gold, the ultimate goal is to stabilize the gold bar market, for the benefit of 100 million people, not for the benefit of gold trading enterprises,” the Deputy Governor affirmed.

The State Bank's leaders also affirmed that the State does not protect gold trading, but always respects people's rights to preserve, store, and buy and sell gold bars.

“But the State does not encourage trading in gold bars and does not protect the price of gold bars. The State Bank also does not accept a difference of up to 20 million VND/tael with the world price , nor does it accept a difference with other gold.

All will be amended when Decree 24 is revised in the near future, which will demonstrate determination in managing the gold market" - the Deputy Governor emphasized and said that in the coming time, the Decree will be developed and public opinions will be sought.

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