State Bank moves to cool gold market
The ban on gold imports has been lifed
after a 16-month restriction aimed at cooling down the currently
over-heated market in the precious metal, State Bank of Vietnam
Governor Nguyen Van Giau told reporters in Hanoi on Nov. 11
The ban on gold imports has been lifed
after a 16-month restriction aimed at cooling down the currently
over-heated market in the precious metal, State Bank of Vietnam
Governor Nguyen Van Giau told reporters in Hanoi on Nov. 11.
The decision, which took effect the same day, came following a recent spike in domestic gold prices. Six gold trading companies would be authorized to import gold without limitation, but the identifies of the firms have not yet been disclosed.
Right before the decision, domestic gold price reached an all time high of 30 million VND (1,666 USD) per tael [one tael being equivalent to 1.2 ounces] on Nov. 11, up more than 2 million VND in just a few hours and up 4.5 million VND from Nov. 9.
Globally, gold was at 1,108.00 USD per ounce at 0538 GMT on Nov 11, according to XAU spot prices.
After the State Bank’s decision, the price dropped sharply for the first time in recent days to about 26.8 million VND per tael and was expected to slipped further over the coming days.
“The increase in domestic gold prices was driven by speculative rumours around the central bank saying Vietnam would devalue the dong, the October trade deficit, and the rise of global gold prices,” said Giau.
The head of the State Bank confirmed again that it would continue to pursue a stable and flexible exchange rate policy to boost exports and stabilise the economy.
The nation has imported gold under quota in recent years, with 90.5 tonnes imported in 2008, 51 tonnes in 2007, 91 tonnes in 2006 and 48 tonnes in 2005, according to State Bank figures./.
The decision, which took effect the same day, came following a recent spike in domestic gold prices. Six gold trading companies would be authorized to import gold without limitation, but the identifies of the firms have not yet been disclosed.
Right before the decision, domestic gold price reached an all time high of 30 million VND (1,666 USD) per tael [one tael being equivalent to 1.2 ounces] on Nov. 11, up more than 2 million VND in just a few hours and up 4.5 million VND from Nov. 9.
Globally, gold was at 1,108.00 USD per ounce at 0538 GMT on Nov 11, according to XAU spot prices.
After the State Bank’s decision, the price dropped sharply for the first time in recent days to about 26.8 million VND per tael and was expected to slipped further over the coming days.
“The increase in domestic gold prices was driven by speculative rumours around the central bank saying Vietnam would devalue the dong, the October trade deficit, and the rise of global gold prices,” said Giau.
The head of the State Bank confirmed again that it would continue to pursue a stable and flexible exchange rate policy to boost exports and stabilise the economy.
The nation has imported gold under quota in recent years, with 90.5 tonnes imported in 2008, 51 tonnes in 2007, 91 tonnes in 2006 and 48 tonnes in 2005, according to State Bank figures./.
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