The State Bank has just released a report summarizing and evaluating the implementation of Decree 24 (2012) on the management of gold trading activities.
SJC gold price is still 14 - 15 million VND/tael higher than the world price .
The State Bank said it has organized inspections and examinations nationwide to rectify gold trading activities, handle violations within its authority, and request correction of problems discovered after inspections and examinations.
In the first phase in May 2022, the State Bank directed the State Bank branches in Hanoi and Ho Chi Minh City to establish inspection teams for a number of gold trading enterprises headquartered in the area.
In the second phase in July 2022, the State Bank expanded the inspection and examination area by requiring State Bank branches in 63 provinces and cities to coordinate with relevant local authorities (Market Management Department, Department of Science and Technology, Police, etc.) to conduct inspections and examinations of gold trading organizations.
The State Bank also reported the results of the inspection at an inter-sectoral meeting on the gold market situation and the difference between world gold prices and domestic SJC gold bar prices, chaired by the Deputy Prime Minister.
In July 2022, the State Bank held a meeting to collect opinions on the policy on managing gold trading activities with subjects directly affected by the policy including: Vietnam Gold Trading Association and 33 credit institutions and enterprises with gold bar trading activities.
Delegates attending the meeting unanimously assessed the successes of Decree 24 and the policy of ending gold mobilization and lending, limiting goldization in the economy, eliminating goldization from the system of credit institutions, thereby stabilizing the domestic monetary and foreign exchange markets and macro-economy.
Delegates also agreed that amending Decree 24 is an issue that needs careful consideration to ensure the goal of combating gold-ization and limiting impacts on the currency and foreign exchange markets.
In November 2022, the State Bank will consult with 63 State Bank branches in provinces and cities on the assessment and summary of Decree 24. On that basis, the State Bank will revise the draft assessment and summary report of Decree 24.
In February this year, the State Bank sent a request for comments from relevant ministries, branches and the Vietnam Gold Business Association (by the end of May 2023, the State Bank had received all comments). In early June, the State Bank and the Ministry of Justice had a direct discussion with a number of gold business associations to learn about the experience of managing the gold market in a number of countries in the Southeast Asian region.
In the coming time, the State Bank will continue to coordinate with relevant parties to research and propose appropriate gold management policies in the process of drafting a summary report and evaluating the implementation of Decree 24.
Talking to Tien Phong reporter, Mr. Nguyen The Hung - expert of Gold Business Association - said that the domestic gold market includes 2 main types of products, including: SJC gold, the exclusive brand of the State Bank and gold in the form of jewelry, packaged in blisters of other businesses.
According to Mr. Hung, from 2014 to now, the State Bank has not released any more gold to the market, not to mention that SJC gold bars in circulation have even been converted to serve the production of gold jewelry and fine arts to meet domestic and export demand. Due to the reduced supply, the high price of gold on the world market, and businesses being defensive and stockpiling gold, the price of SJC gold bars has been pushed up above the 68 million VND/tael mark. The price of SJC gold is always 14-15 million VND/tael higher than the world price.
“It is time for the State Bank to amend Decree 24. Accordingly, the State Bank should conduct a thorough survey to stabilize the market, bring domestic gold prices closer to the world price, and avoid smuggling. It is necessary to increase market supply by abolishing the regulation that the State Bank has a monopoly on the production of gold bars and not use one type of SJC gold bar as an exclusive brand as it is now to protect the interests of gold buyers,” said Mr. Hung.
(Source: Tien Phong)
Source
Comment (0)