Gold trading enterprises may be allowed to import gold if domesticprices continue to surge, says the head of the State Bank of Vietnam'sForeign Exchange Department Nguyen Quang Huy.
The statement was made on Oct. 7 after domestic gold prices soared inthe afternoon. One tael of gold (equivalent to 1.2 troy ounces) costs33.05 million VND (1,690 USD), a record high.
"The centralbank may consider allowing dealers to import a suitable quota tostabilise market prices in line with global changes," Huy said.
He added that the sudden surge in gold prices was caused by theincrease in global prices, which are now at a record high of 1,349 USDper ounce. Speculation and psychological worries also likely effectedthe inflation.
As of Oct. 7 afternoon, the price of goldin the domestic market was 1 million VND (51.28 USD) per tael higherthan the global price.
"The imbalance between supply anddemand is making gold prices ‘crazy'," said Huynh Trung Khanh,International Gold Council's senior consultant official in Vietnam. "Thesupply is drying up."
In July, the State Bank allowedenterprises to import seven tonnes of gold. However, dealers said thevolume was unable to meet the market's growing demand.
InAugust, the Vietnam Gold Trading Association asked the central bank toallow them to import more gold bars to process, but the proposal wasrejected.
The increase in the price of gold caused the USdollar's exchange rate to increase to 19,850 VND on Oct. 7 from 19,750VND on Tuesday./.
The statement was made on Oct. 7 after domestic gold prices soared inthe afternoon. One tael of gold (equivalent to 1.2 troy ounces) costs33.05 million VND (1,690 USD), a record high.
"The centralbank may consider allowing dealers to import a suitable quota tostabilise market prices in line with global changes," Huy said.
He added that the sudden surge in gold prices was caused by theincrease in global prices, which are now at a record high of 1,349 USDper ounce. Speculation and psychological worries also likely effectedthe inflation.
As of Oct. 7 afternoon, the price of goldin the domestic market was 1 million VND (51.28 USD) per tael higherthan the global price.
"The imbalance between supply anddemand is making gold prices ‘crazy'," said Huynh Trung Khanh,International Gold Council's senior consultant official in Vietnam. "Thesupply is drying up."
In July, the State Bank allowedenterprises to import seven tonnes of gold. However, dealers said thevolume was unable to meet the market's growing demand.
InAugust, the Vietnam Gold Trading Association asked the central bank toallow them to import more gold bars to process, but the proposal wasrejected.
The increase in the price of gold caused the USdollar's exchange rate to increase to 19,850 VND on Oct. 7 from 19,750VND on Tuesday./.
