The State Bank of Vietnam is considering a plan to buy gold from local sources after selling over 1.7 million taels to the market, according to an official. One tael equals 1.2 troy ounces.

Head of the central bank's Forex Management Department Nguyen Quang Huy announced the plan to the participants at a recent workshop in the capital city, adding that it would increase forex reserves in Vietnam.

Huy said that global gold prices were unlikely to increase following the positive global recovery. The domestic economic outlook had also recovered well, so investors were looking at other forms of investment.

He did not mention when the bank would start to buy back gold, but said they were well prepared for any situation.

SBV said that its intervention in the gold market had helped curb inflation and stabilise the economy.

According to Huy, the central bank's gold auctions have helped reduce speculative activity in the market. The measure have helped minimise gold imports and increase foreign reserves. Since March 28 this year, SBV has held 70 auctions and sold 1.7 million taels to local credit institutions.

Under Government Decree N°24/2012/ND-CP dated April 2012 on gold business activities, SBV is responsible for purchasing and selling gold in the domestic market, and mobilising gold as regulated by the Prime Minister.-VNA