Will set up gold trading floor when appropriate
This morning (November 11), the National Assembly questioned a group of issues in the banking sector. Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong answered the questions.
Delegate Duong Khac Mai (Dak Nong) said that the prices of gold are racing to reach new peaks, making those who want to own them dizzy and the management agencies have a headache. "I would like to ask the Governor of the State Bank to give us a solution to make people feel secure about the stability of the VND, to give up the mentality of hoarding gold to save resources for development" - the delegate asked.
Appreciating the work of bringing SJC gold price closer to world gold price, the delegate asked the Governor of the State Bank to say who will benefit and who will lose when bringing SJC gold price closer to world gold price?
Responding to this content, Governor Nguyen Thi Hong said that gold is currently a headache for the world. Before the State Bank intervened, the international gold price was 2,300 - 2,400 USD/ounce. Now it has increased to over 2,700 USD/ounce.
The State Bank intervened with the aim of reducing the gap between domestic and international gold prices. As the gap and people's demand increased, there was also a phenomenon of gold smuggling in recent times.
As for the fluctuating gold price, it is not really stable due to objective factors of the world economy. The Bank will consider solutions to intervene towards stability.
Regarding who benefits from SJC gold, Governor Nguyen Thi Hong said that when people buy gold at a high price, they will sell it at a high price and vice versa. However, the benefit of one person will make the other person lose.
Businesses that trade in gold bars must also calculate so they do not take risks.
Delegate Do Huy Khanh (Dong Nai Delegation) said that in the world, there are many countries that allow the establishment of gold trading floors, attracting gold resources and bringing many opportunities to domestic investors. The delegate asked the Governor to give his opinion on this issue?
Responding to this content, Governor Nguyen Thi Hong said that in some countries in the world, gold exchanges have been established, such as China, which also has a large gold exchange in Shanghai. However, in the region, there are also some countries that do not have gold exchanges.
The establishment of the floor will also have some positive points such as transactions will be transparent, making the buying and selling needs of people and businesses more convenient.
But to establish a floor also requires investment in infrastructure and Vietnam is not a gold producing country like China. Therefore, gold for trading between market participants must also be imported from abroad.
To establish a floor requires the State Bank to coordinate with ministries and branches to carefully assess the impacts and make recommendations to the Government at an appropriate time.
Invite the Ministry of Public Security to monitor the gold market to avoid profiteering and fraud
Delegate Tran Thi Thanh Huong (An Giang Delegation) raised the issue of gold market management closely following Decree 24 and legal regulations.
Besides fluctuations, the domestic gold market depends on world gold prices and market supply and demand. It also does not rule out the possibility of market manipulation, violations of relevant regulations on taxes and competition, leading to a high difference between domestic and world gold prices.
Through gold market management, the Governor said that each ministry and sector needs to be proactive in coordinating and participating in management.
The State Bank also presides over the management of the gold market, inviting representatives of relevant agencies, especially the Ministry of Public Security, to support and monitor the implementation process to avoid profiteering and fraud during the State Bank's intervention.
The State Bank of Vietnam coordinated with the Ministry of Industry and Trade and the Ministry of Science and Technology to inspect gold businesses and evaluate the implementation of Decree 24, advising the Government to issue new regulations to limit and overcome difficulties.
