Eliminating the gold bar monopoly, a step towards transparency in the gold market. (Photo: Vietnam+)
The State Bank has just announced the conclusion of an inspection of the gold trading activities of a number of large banks and enterprises such as SJC, PNJ, Bao Tin Minh Chau, Doji . The results show that these units violated documents and invoices, anti-money laundering regulations and showed signs of providing misleading information and unfair competition. These violations have increased speculative psychology, causing fluctuations in gold prices and market instability in recent times.
To solve the problem, General Secretary To Lam directed the abolition of the monopoly mechanism for gold bar production, allowing many qualified enterprises to participate, in order to create a healthy competitive environment, diversify supply sources and stabilize prices. This direction received strong support from experts and public opinion, because a transparent competitive market will limit unusual gold price fevers.
Monopolies need to be eliminated for a healthy gold market.
Mr. Nguyen Quang Huy, CEO of the Faculty of Finance and Banking, Nguyen Trai University, highly appreciated the transparency in the State Bank's inspection conclusions. Mr. Huy said that the inspection of large enterprises reflects loopholes in the supply chain, price listing and gold trading. The monopoly mechanism of SJC gold bars, combined with limited supply and large difference in buying and selling prices, has increased speculative psychology, pushing domestic gold prices to skyrocket.
Mr. Huy also emphasized that in order to stabilize the gold market, it is necessary to review the rationality of the SJC monopoly mechanism. Allowing businesses with the capacity to produce standard gold bars under strict supervision, along with a transparent gold import mechanism, will help balance supply and demand. At the same time, it is necessary to strictly handle gold smuggling to avoid a market situation that is "half-floating, half-submerged."
Sharing the same view, Mr. Hoang Van Cuong, member of the Finance and Budget Committee of the National Assembly, also said that in order to have a normal market balance, the monopoly on gold bars must be removed and many units must be allowed to trade. Moreover, the domestic gold price compared to the world price often has a high difference, not connected, due to the import monopoly, so to eliminate this difference, we must open the door to gold imports.
“However, gold is a type of stored asset, not a normal commodity. Gold trading has a great impact on foreign currency-related issues. Therefore, if the monopoly is abolished but opened freely, allowing for self-purchase and sale, it will easily cause chaos. In particular, gold import and export is related to foreign currency. Therefore, the State must manage it.
Gold transactions at the enterprise. (Photo: Vietnam+)
Therefore, the monopoly will be eliminated but only qualified units will be allowed to trade in gold bars," Mr. Cuong emphasized.
Dr. Dinh The Hien, Director of the Institute of Informatics and Applied Economics, proposed studying people's annual demand for gold to set reasonable import quotas. He said that domestic gold prices are unusually high because Vietnam has not imported gold in the past 14 years. Regularly supplementing the supply will narrow the gap between domestic and world gold prices.
Proposal to establish a National Gold Exchange
General Secretary To Lam proposed to study the establishment of a National Gold Exchange, or integrate gold trading into a Commodity Exchange, or build a Gold Exchange in the International Financial Center. Experts consider these to be strategic solutions to make the gold market transparent and modern.
Mr. Hoang Van Cuong proposed to build a secondary gold trading floor, allowing people to buy and sell gold through electronic payments, store gold in credit accounts or withdraw physical gold. This solution helps people trade conveniently, without having to queue or store gold at home. Gold businesses also save on processing costs and reduce the need to import gold in foreign currency.
Mr. Cuong emphasized: "Mobilizing the amount of gold stored by the people into a fund will create a large resource for the economy."
Associate Professor Nguyen Huu Huan, Ho Chi Minh City University of Economics, supports the hybrid gold exchange model - combining gold account trading and physical gold. People can buy and sell "gold credits" through accounts and withdraw gold when needed, which is both convenient and reduces the pressure of physical storage.
Experts say an independent national gold exchange should be established to increase transparency. (Photo: Vietnam+)
Lawyer Truong Thanh Duc, Director of ANVI Law Firm, believes that the National Gold Exchange is the most feasible model in the short and medium term. Designed as an independent intermediary agency, operating under the supervision of the State Bank and the Ministry of Finance, the Exchange will list gold prices according to supply and demand, connecting credit institutions, businesses and individual investors via an electronic platform.
In addition, the Department can provide derivative products such as futures contracts and options to help hedge against gold price and exchange rate risks. The gold trading floor will increase transparency and provide real-time data for the State to adjust policies promptly.
Experts say that eliminating the monopoly on gold bars and establishing a National Gold Exchange are necessary steps to make the gold market transparent, reduce the price gap between domestic and international prices, and mobilize gold resources among the people for economic development.
However, to be effective, strict management, flexible import mechanisms and strict handling of violations are needed. These solutions not only stabilize the gold market but also contribute to strengthening the confidence of people and businesses, towards a healthy and sustainable financial market./.
According to Vietnamplus
Source: https://www.vietnamplus.vn/xoa-bo-doc-quyen-vang-mieng-buoc-tien-minh-bach-hoa-thi-truong-vang-post1041766.vnp
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