Prime Minister continues to request strengthening measures to manage the gold market

On March 20, Prime Minister Pham Minh Chinh signed Official Dispatch No. 22/CD-TTg requesting to strengthen measures to manage the gold market.

The content of the telegram clearly stated that, in the past time, the Prime Minister issued Official Dispatch No. 1426/CD-TTg dated December 27, 2023 on solutions to manage the gold market; the Government issued Resolution No. 20/NQ-CP dated February 5, 2024 directing the State Bank of Vietnam to closely monitor developments in world and domestic gold prices to promptly implement measures to stabilize the gold market; Government leaders have issued many documents directing and urging the State Bank of Vietnam and relevant agencies to urgently implement measures to manage and supervise gold market activities.

However, the world and domestic gold markets are complicated, domestic gold prices fluctuate strongly, affecting the stability and safety of the financial and monetary markets and social psychology.

To strengthen measures to manage and develop a safe, healthy, effective and sustainable gold market, the Prime Minister requested the State Bank of Vietnam to preside over and coordinate with relevant agencies to urgently, seriously, fully, effectively and promptly implement tasks and solutions to stabilize the gold market; continue to closely monitor developments in world and domestic gold prices to promptly implement solutions according to regulations to stabilize the gold market.

In addition, the Prime Minister also requested the State Bank to comprehensively assess, carefully analyze and have effective, timely and regulated solutions, in accordance with market principles to immediately handle the high difference between domestic and international gold bar prices in the past time, not to "goldenize" the economy, not to negatively impact exchange rates, interest rates, the money and foreign exchange markets and national financial and monetary security and safety; report to the Prime Minister on the implementation results in March 2024.

In addition, the State Bank must thoroughly and comprehensively review the legal framework, mechanisms and policies related to the management of the gold market and the trading of gold bars and gold jewelry... Immediately summarize the implementation of Decree No. 24/2012/ND-CP to promptly propose to competent authorities to consider amending and supplementing regulations to enhance the effectiveness of state management tools, supplement handling measures according to competent authority in accordance with regulations, develop a transparent, healthy, effective and sustainable market, contribute to promoting socio-economic development, stabilizing the macro-economy; report to the Prime Minister before March 22.

The Prime Minister also requested the State Bank to immediately conduct inspections and examinations of the gold market, the activities of gold trading enterprises, stores, agents distributing and trading gold bars and other entities participating in the market; promptly detect loopholes and shortcomings to proactively, actively and effectively handle them according to its authority and report to competent authorities for appropriate and prescribed handling measures for issues beyond its authority; strictly handle violations according to legal regulations, especially acts of gold smuggling across the border, profiteering, speculation, manipulation, taking advantage of price-pushing policies by organizations and individuals... causing instability and insecurity in the gold market.

In case of detecting gold trading activities with signs of violating the law, promptly transfer documents and records to competent authorities for strict, public and transparent handling in accordance with the law; report to the Prime Minister on the implementation results in March 2024.

The State Bank needs to be more proactive in information and communication work, promptly providing official, public and transparent information on policies and strategies for managing the financial, monetary, foreign exchange and gold markets, strengthening confidence in the value of the Vietnamese Dong and stabilizing people's psychology, creating social consensus.

The Prime Minister requested the Ministry of Public Security to preside over and coordinate with the State Bank of Vietnam and relevant inspection, examination, law enforcement agencies and functional agencies to promptly implement measures as prescribed to strictly handle violations of the law related to the gold market and gold trading activities, especially acts of smuggling, manipulation, speculation, and price hikes of gold bars...

The Prime Minister also requested the Ministries of Public Security, Industry and Trade, Finance, Justice, Science and Technology, Information and Communications, relevant agencies and localities, according to their assigned functions and tasks, to proactively coordinate closely with the State Bank of Vietnam on gold market management, promptly share and provide information and proactively handle work and tasks within their authority, promptly report to competent authorities on issues arising beyond their authority.