State Bank will increase supply of gold bars

This was shared by Deputy Governor of the State Bank Pham Thanh Ha on April 12, right after the Prime Minister directed to have "immediate" solutions to reduce the difference between gold bar prices and the world price.

Each tael of SJC gold bar is currently 12-13 million VND higher than the world price, down from the previous difference of 18-20 million VND, but still high.

Recently, due to the complicated developments of the international market, domestic gold prices have fluctuated strongly and maintained a high difference compared to the world. To stabilize the market, the State Bank said it is ready with plans to intervene and inspect gold trading activities of enterprises and credit institutions nationwide in 2022-2023.

Regarding the gold bar market, the Deputy Governor of the State Bank said "we will immediately increase the supply of gold bars" to reduce the difference compared to the world.

For a long time, SJC has been the sole entity authorized to produce gold bars, but in reality, over the past decade, the State Bank has not granted this entity a license to stamp more. Therefore, the supply of this item has become limited and is also a reason why gold bars are high compared to the world.

Regarding the gold jewelry and fine art market, the State Bank said it will continue to create maximum conditions to ensure sufficient raw materials for production activities to export gold jewelry and fine art.

In addition, the agency said it will coordinate with relevant ministries, branches, and functional agencies to require businesses to use electronic invoices in gold buying and selling transactions to improve transparency and management efficiency. The State Bank will also monitor and strictly handle acts of gold smuggling across the border, profiteering, speculation, and gold price manipulation. The agency and ministries and branches have completed the establishment of an inspection team and will deploy it this April.

Regarding Decree 24 on gold trading management, the State Bank has reported on the summary and evaluation of the implementation process and has also proposed a number of directions for revision, supplementation and implementation in the coming time.