Receiving comments from businesses to advise on proposals to amend Decree 24

State Bank Governor Nguyen Thi Hong requested units to fully absorb valid comments from gold trading enterprises and banks to propose amendments to Decree 24.

Governor of the State Bank Nguyen Thi Hong speaks at the meeting. (Photo: SBV)

On June 21, in Hanoi , the State Bank of Vietnam held a meeting with gold bar trading organizations to thoroughly grasp the direction of the Government and the Prime Minister on market management, discuss measures as well as propose and recommend to continue to implement the goal of stabilizing the gold market.

After three weeks of selling gold in a new form at four state-owned commercial banks and Saigon Jewelry Company (SJC), the current price of SJC gold is about 4 million VND/tael higher than the world gold price, significantly narrowing compared to the level of nearly 20 million VND previously.

At the meeting, commercial banks and businesses all assessed that the drastic intervention measures of the State Bank have been effective, narrowing the gap between domestic and international gold bar prices in accordance with the direction of the Government, the Prime Minister and the opinions of competent authorities.

Besides, commercial banks and enterprises also admit that if the State Bank does not intervene in the gold market, allowing high price differences will have negative impacts such as smuggling, tax evasion, imbalance in the balance of payments, affecting exchange rate management and the macro economy.

Mr. Do Minh Phu, Chairman of the Founding Council of DOJI Group, said that many times before when the gold price fluctuated, the State Bank sent out a message of readiness to intervene. But this time we see that these are very clear and drastic measures. We have been following this issue and have complete confidence and see that the measures of the State Bank are very drastic and go right to the point.

At the meeting, there were opinions that the recent market developments showed signs of hiring queues, market manipulation, and market manipulation. Units participating in the sale of SJC gold bars all affirmed that they will continue to improve processes and technology to facilitate people who want to buy real gold, eliminating speculation. However, it is also necessary to communicate so that people are clearly aware, avoiding psychological effects when buying gold.

According to Mr. Nguyen Thanh Tung, General Director of the Bank for Foreign Trade of Vietnam (Vietcombank), in the coming time, Vietcombank will continue to implement the direction of the State Bank, and continue to optimize the process of supplying and selling gold to people. In which, it will continue to put gold sales on the app, non-cash payments in the direction of ensuring transparency and convenience.

Also at the meeting, there were opinions that the world gold market is unpredictable, people need to be careful, avoid psychological effects when buying gold to limit risks.

According to Decree 24, the State Bank is responsible for implementing state management of the gold market. The management of the gold market must be based on developments in the domestic and international context, monetary policy management goals, and macroeconomic developments to decide the appropriate timing, level, and dosage of intervention in the gold market.

The Governor requested units to maximally absorb valid comments from gold trading enterprises and banks to advise on proposed amendments to Decree 24.

The State Bank affirms that it has enough determination, resources, and tools to implement appropriate short-term and long-term solutions for the gold market to develop stably according to the principle of a market under state management.

Source: https://baolangson.vn/tiep-thu-gop-y-cua-doanh-nghiep-de-tham-muu-de-xuat-sua-doi-nghi-dinh-24-5012513.html