State commercial banks to directly sell gold to people: deputy governor

The State Bank of Việt Nam (SBV) will directly sell gold to State-owned commercial banks starting June 3 and the banks will sell gold to the public.

The State Bank of Việt Nam (SBV) will directly sell gold to State-owned commercial banks starting June 3 and the banks will sell gold to the public, Deputy Governor Phạm Quang Dũng said in a recent meeting with the media.

The SBV will decide the prices of gold sold to the banks based on world prices, Dũng said, noting State-owned commercial banks with their extensive networks have prepared necessary conditions to organise direct gold sales to people in need.

According to the deputy governor, following the instructions of the Government and the Prime Minister, the SBV has organised nine auctions, supplying 48,500 taels of SJC gold to the market, equivalent to over 1.8 tonnes of gold.

However, the gold price difference between Việt Nam and the world remains high, at around 20 per cent.

This indicates that, in addition to market factors such as supply-demand relationship, there might be illegal activities like price manipulation and fixing, causing market instabilities.

Dũng added the central bank is coordinating with the Ministry of Public Security, Ministry of Finance, Ministry of Industry and Trade, and Government Inspectorate to inspect compliance with policies and laws in gold business activities by credit institutions and enterprises. Violations of the law will be strictly handled, the official stressed.