Central bank urges caution in gold trading

Hanoi: The central bank has warned people to take caution when trading gold amid the strong fluctuations of the precious metal.

Dao Xuan Tuan, Director of the State Bank of Vietnam (SBV)’s Department of Foreign Exchange Management, noted that the bank has prepared measures to stabilise the domestic gold market, referring to the increase of SJC-branded gold bullion supply.

The central bank always closely monitors market developments and is ready to take solutions to stabilise it in order to minimise the impacts of gold price fluctuations on exchange rates, inflation and macroeconomic stability, he affirmed.

It will continue coordinating with the Ministry of Public Security and other relevant ministries and agencies to intensify inspections over gold business, Tuan continued.

The price of gold bullions in Vietnam had skyrocketed over the past weeks, even peaking at 83 million VND (3,419 USD) per tael. The difference between domestic and world gold prices has continuously expanded in recent days, reaching ne
arly 20 million VND per tael at certain moments.

Given this, Prime Minister Pham Minh Chinh has issued a dispatch asking for measures to strengthen the management of the domestic gold market.

He ordered relevant agencies to work with the SBV to immediately roll out measures to strictly handle violations, especially smuggling, manipulation and speculation, ensuring a stable, transparent, safe, healthy and effective domestic gold market./.
Source: Vietnam News Agency