The State Bank of Vietnam (SBV) intends to keep up gold auctions tocorrect imbalances in supply and demand in the domestic market,according to the SBV’s Foreign Exchange Management Department.
From March 28 to December 6 this year, the central bank held 73auctions in which it offered up 1.88 million taels (one tael equals 1.2troy ounces).
The auctions managed to inject1.77 million taels into local credit institutions in a bid to combatspeculative activity in the market, minimise gold imports and increaseforeign reserves.
Gold auctioning is among a range of policy levers put into action more than a year ago to moderate the gold market.
Director of the SBV’s Foreign Exchange Management Department NguyenQuang Huy said the policy has significantly improved the imbalance ofsupply and demand, stablised foreign exchange rates and secured thelegal rights of gold holders.
Vietnamese citizenshave a long tradition of privately storing gold reserves due todeep-seated problems causing high inflation and depreciations in theVND.
In a bid to wean people off gold holdings andto shore up the dwindling local currency, the SBV shut down goldservices in which banks paid interest rates for gold deposits.
Gold holders now have to pay for their storage at banks, with thepolicy designed to encourage people to covert bullion gold into VND.
Under Government Decree N°24/2012/ND-CP dated April 2012 ongold-related activities, the SBV is responsible for purchasing andselling gold in the domestic market. Gold imported and exported by thecentral bank are exempt from taxes.
Global price movements
Following the rise of world gold prices, domestic gold prices onDecember 17 were up around 0.16 percent per tael against December 16.
Buying and selling prices of SJC gold bars listed by DOJI at 5pmDecember 17 were 35.44/35.49 million VND per tael (1,675/1,678 USD), uparound 100,000 VND (4.7 USD) from 35.35/35.43 million VND (1,671/1,675USD) on December 16.
World gold increased onDecember 17, supported by a short-covering rally. Spot gold had risen0.7 percent to 1,245.90 USD an ounce.
According toReuters, gold has lost over a quarter of its value this year as fearsthat the Fed will scale back its 85 billion USD monthly bond purchasesbrought a 12-year bull market to an end.-VNA
From March 28 to December 6 this year, the central bank held 73auctions in which it offered up 1.88 million taels (one tael equals 1.2troy ounces).
The auctions managed to inject1.77 million taels into local credit institutions in a bid to combatspeculative activity in the market, minimise gold imports and increaseforeign reserves.
Gold auctioning is among a range of policy levers put into action more than a year ago to moderate the gold market.
Director of the SBV’s Foreign Exchange Management Department NguyenQuang Huy said the policy has significantly improved the imbalance ofsupply and demand, stablised foreign exchange rates and secured thelegal rights of gold holders.
Vietnamese citizenshave a long tradition of privately storing gold reserves due todeep-seated problems causing high inflation and depreciations in theVND.
In a bid to wean people off gold holdings andto shore up the dwindling local currency, the SBV shut down goldservices in which banks paid interest rates for gold deposits.
Gold holders now have to pay for their storage at banks, with thepolicy designed to encourage people to covert bullion gold into VND.
Under Government Decree N°24/2012/ND-CP dated April 2012 ongold-related activities, the SBV is responsible for purchasing andselling gold in the domestic market. Gold imported and exported by thecentral bank are exempt from taxes.
Global price movements
Following the rise of world gold prices, domestic gold prices onDecember 17 were up around 0.16 percent per tael against December 16.
Buying and selling prices of SJC gold bars listed by DOJI at 5pmDecember 17 were 35.44/35.49 million VND per tael (1,675/1,678 USD), uparound 100,000 VND (4.7 USD) from 35.35/35.43 million VND (1,671/1,675USD) on December 16.
World gold increased onDecember 17, supported by a short-covering rally. Spot gold had risen0.7 percent to 1,245.90 USD an ounce.
According toReuters, gold has lost over a quarter of its value this year as fearsthat the Fed will scale back its 85 billion USD monthly bond purchasesbrought a 12-year bull market to an end.-VNA
