Vietnam weighs gold exchange amidst volatility: SBV

Governor of the State Bank of Vietnam Nguyen Thi Hong fields legislators’ questions on November 11. (Photo: VNA)

Hanoi (VNA) – Governor of the State Bank of Vietnam Nguyen Thi Hong underscored the need for thorough assessment before establishing a gold exchange, while fielding legislators’ questions on the issue at the 15th National Assembly’s eighth sitting on November 11.

She said that while some countries, such as China with its prominent Shanghai Gold Exchange, have established successful gold trading platforms, others in the region have opted not to.

Although a gold exchange could enhance market transparency and improve accessibility for individuals and businesses, the country's position as a gold importer requires careful consideration regarding infrastructure investment, she added.

The central bank governor highlighted several ongoing issues in the gold market, with a persistent price gap between domestic and international prices, market instability driven by psychological factors and expectations, potential risks to monetary and foreign exchange markets, and limited incentives for citizens to convert gold holdings into VND for investment in business and production activities.

According to Hong, along with continuing consideration of rational intervention to stabilise the market and deliver on the goals of the monetary policy, the central bank will join hands with competent ministries and sectors to step up market supervision and strengthen the State management over the market to ensure economic security, financial security, national monetary security, and social order.

It has directed relevant credit institutions and licenced businesses to strictly comply with legal regulations on gold trading activities and maintain close coordination with media outlets and relevant agencies to provide information related to the market management policies and regulations, aiming at stabilising public sentiment and promoting social consensus, she added./.

VNA