Friday, August 17, 2018 10:02:42 AM - Markets open
VN-INDEX 969.95 +5.67/+0.59%
HNX-INDEX 108.49 +0.57/+0.53%
UPCOM-INDEX 51.50 +0.11/+0.22%
'Ready’ to intervene in gold prices: SBV
Source: VNS - 12/9/2016 11:21:03 AM
 (0 ratings. You must sign in to rate.)
The public is interested in developments in the gold market and in how regulators are dealing with them after gold prices rose higher against international levels recently. Nguyễn Ngọc Cảnh, Director of the State Bank of Việt Nam’s (SBV) Foreign Exchange Management Department talks to Vietnam News Agency reporter Đỗ Huyền about the issue.

The difference between domestic and international gold prices has grown recently. Why?

The difference between the Sài Gòn Jewelry Company’s (SJC) gold bar price and the world gold price has grown since the end of November, with the gap amounting to VNĐ4.4 million (US$199.10) per tael (1.02 ounces) at certain times. However, the difference between the price of gold materials and the converted price of international gold, with no fees included, stayed below VNĐ1 million per tael. The gold market has been stable with the quantity of daily traded gold bars remaining low – about 20 per cent less than the volume recorded over the same period last year. People have not flocked into gold shops for buys recently.

The price of SJC gold bullions was increasingly higher than the world gold price because of declines in the international gold price, as the US dollar continued to strengthen against other key currencies. Bond interest rates increased and investors were more optimistic about the prospect of the financial market – as the US Federal Reserve is likely to raise interest rates later this year – contributing to gold price developments.

The current world gold price is around $1,170 per ounce, a 10-month low. This was down some $167 per ounce from a November 9 peak after Donald Trump won the US election. Meanwhile, enterprises and people that previously bought gold at high prices have not wanted to sell gold. Therefore, the domestic gold price has declined from some VNĐ37 million per tael to about VNĐ36.62 million per tael.

How will the SBV direct the gold market in the coming months?

The SBV will closely monitor market developments and it has ready plans and adequate resources to intervene in the gold market if necessary. Any intervention will be implemented in line with Government directives, especially Decree No 24/2012/NĐ-CP on gold business management. In four years of implementing the decree, authorities have kept the gold market stable and made gold bars less attractive to buyers – a positive result. The SBV is considering revising the decree to update it. The central bank will continue to tightly manage the gold bar market and facilitate healthy development of the jewellery market to assure legal rights and interests of people and businesses.

The gold price developments, besides a recent rumour that Việt Nam will replace banknotes with new ones, may affect people’s psychology on gold and foreign currency transactions. What is your recommendation?

The SBV has affirmed that the rumour is false. People should be extremely cautious about every decision to buy or sell gold and foreign currencies, to avoid unwanted risks or damage for themselves. The central bank will closely track macro-economic developments, especially global monetary developments, to prepare measures and tools for timely intervention. Besides, the SBV has directed its provincial and municipal branches to intensify supervision and inspection of foreign exchange activities. They are to co-ordinate with relevant ministries and agencies to detect and strictly treat violators of regulations on gold and foreign currency deals.
Newer News
16/08 Reference exchange rate up on August 16
16/08 Moody’s upgrades ratings of 14 Vietnamese banks
15/08 Reference exchange rate drops on August 15
15/08 Private banks raise interest rates to attract depositors
15/08 Moody's upgrades Vietnam's ratings
13/08 Reference exchange rate goes up at week’s beginning
09/08 Reference exchange rate continues to go down
08/08 Seven-month State budget collection up 13.4 percent
08/08 Reference exchange rate goes down
06/08 Reference exchange rate stable at week’s beginning
Older News
09/12 SBV: Secured loans account for majority of bad debt
08/12 Incoming remittances to HCMC predicted to drop this year
07/12 Reference exchange rate adjusted up 4 VND
05/12 SBV unveils 2017 policy
03/12 Gov’t moots law on bad debts settlement
03/12 Moody’s: Outlook for Việt Nam’s banks stable
03/12 G-bond sales almost meet full-year target
02/12 State bank: Banknote change news is fabrication
01/12 Lending expands over 14% as of November 22
01/12 Interbank dong-dollar exchange rate volatile
Newsletter Signup
Top Stories
VN manufacturing PMI hits 22-month high in March
CPI goes up 4.96 percent year-on-year in first quarter
Slight rise in February CPI
Draft decree on State monopoly in trade submitted to Government
CPI ups 0.46% in January
Market Update
Last updated at 10:07:35 AM
VN-INDEX 969.95 +5.67/+0.59%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.