Deadline for Reporting Gold Market Management and Operations Results to SBV Today, January 31

As per the directive of Prime Minister Pham Minh Chinh, today (January 31, 2024) is the deadline for the State Bank of Vietnam (SBV) to submit a report on the summary of Decree 24, which includes proposals for amending and supplementing certain regulations for managing the gold market.

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Recently, the price of gold in Vietnam, especially SJC gold, has fluctuated drastically, with a peak of nearly 80 million dong per tael at the end of December 2023. The price difference between buying and selling gold is up to 6 million dong per tael.

Immediately after that, Prime Minister Pham Minh Chinh signed Directive 1426/CD-TTg on December 27, 2023, regarding solutions to manage the gold market.

The price of gold is constantly changing. The State Bank of Vietnam (SBV) affirms that it will continue to closely monitor the gold market and be ready to intervene. (Illustrative image)

It is noteworthy that the Prime Minister has directed the SBV to urgently find effective solutions to manage and control the domestic gold price according to market principles, avoiding the high discrepancy between domestic gold and international gold prices as in the past, which negatively affects macroeconomic management. The SBV will report the results of implementation in January 2024.

In the Directive, the Prime Minister requested the SBV to closely monitor the fluctuations in the global and domestic gold prices, promptly implement the prescribed solutions to stabilize the gold market, proactively build scenarios and plans to cope with the fluctuations of the global and domestic gold prices, ready to handle using appropriate, effective, timely tools to contribute to promoting socio-economic development, stabilizing the macro-economy, resolutely preventing the “goldization” of the economy, and avoiding negative impacts on exchange rates, interest rates, currency markets, financial safety and security.

On December 28, 2023, the SBV informed about the solutions to stabilize the gold market. The SBV clearly stated that the main reason for the recent sharp increase in domestic SJAC gold price is the psychological factor in response to the continuous increase in international gold price. When the international gold price fluctuates sharply, the domestic SJAC gold price usually increases at a faster rate.

The SBV also affirmed that it will continue to closely monitor the fluctuations in the gold market and be ready to intervene to stabilize the market. In January 2024, the SBV will submit a report summarizing Decree 24, including proposals to amend and supplement some regulations on gold market management to adapt to the new context of the market.

In the face of the complex and unpredictable developments of the international and domestic gold market, the SBV advises people to be cautious in gold transactions.

The domestic gold price plummeted after the Prime Minister issued Directive 1426/CD-TTg. On the afternoon of December 28, 2023, the price of SJAC gold unexpectedly dropped sharply by 5.3 million dong/tael for buying and 3.8 million dong/tael for selling, to 73.00 – 76.00 million dong/tael (buying – selling).

Meanwhile, the world gold price on the Kitco exchange is at $2,038.4 per ounce (equivalent to 60.51 million dong/tael), lower than the selling price of SJC gold by 16.69 million dong/tael.

SOURCEcafef
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