4 state-owned commercial banks directly sell gold to people

In order to continue effectively implementing the directions of the Government and the Prime Minister on handling the high difference between domestic SJC gold bar prices and world prices, the State Bank of Vietnam will adjust the plan to stabilize the gold market.

On this occasion, Mr. Pham Quang Dung - Deputy Governor of the State Bank had an interview with the press about the State Bank's solutions for the gold market in the coming time.

- Could you please tell us about the State Bank's goals and measures to intervene in the gold market in the coming time to implement the Prime Minister's instructions in reducing the difference between domestic gold bar prices and world gold prices?

-To implement the directions of the Government and the Prime Minister, in the recent past, the State Bank has organized 9 auctions, supplying the market with 48,500 taels of SJC gold, equivalent to more than 1.8 tons of gold.

However, the difference between the domestic SJC gold bar price and the world gold price is still high, about 20%. This shows that, in addition to market factors such as supply-demand relations, the possibility of illegal acts, manipulation, price fixing, causing instability in the gold market cannot be ruled out.

In order to ensure the successful implementation of the market stabilization target as directed by the Government and the Prime Minister, the State Bank will sell gold directly to four state-owned commercial banks (Vietcombank, VietinBank, BIDV, Agribank) so that these banks can sell gold directly to the people. The goal is to soon narrow the gap between domestic and international gold prices to a suitable and sustainable level.

In parallel with the above measures, we are also coordinating with the Ministry of Public Security, the Ministry of Finance, the Ministry of Industry and Trade and the Government Inspectorate to organize inspections of compliance with policies and laws in gold trading activities for credit institutions and enterprises and will resolutely and strictly handle violations of the law (if any).

- Could you please tell us about the time and expected plan to implement the plan to sell gold directly to 4 state-owned commercial banks of the State Bank?

-Next Monday (June 3), the State Bank will sell gold directly to four state-owned commercial banks at a price determined by the State Bank based on world prices.

State-owned commercial banks with their extensive networks have prepared the necessary conditions to organize direct gold sales to people in need.

- With the above intervention plan, what does the Deputy Governor recommend to the people?

-With abundant resources and existing tools, the State Bank has the capacity and determination to stabilize the market and achieve the above-mentioned goals. The gap between domestic and international gold prices will quickly and sustainably narrow.

Therefore, given the complicated developments in domestic and international gold prices, people need to be very careful when participating in gold transactions to minimize risks for themselves.

- Thank you very much, Deputy Governor!