Governor Requests the State Bank to Increase Gold Supply to Stabilize the Market Without Exploiting Policies Are there any other adjustments you would like to make to this text? I can perform additional edits if you wish.

Speaking at a meeting with the Policy Advisory Council on September 7, Prime Minister Pham Minh Chinh stated that the government has actively directed solutions to stabilize the gold market. He instructed the State Bank to immediately research and implement measures to increase supply, balance supply and demand, and prevent policy exploitation. The Prime Minister also emphasized the importance of preventing investment and hoarding, curbing speculation and smuggling, and strengthening inspection and monitoring.

In Official Dispatch 159 dated September 7 on fiscal and monetary policy management, Prime Minister Pham Minh Chinh instructed the State Bank to closely monitor global and domestic gold price movements. The bank is to urgently implement necessary solutions and tools within its authority to stabilize the gold market, narrow the gap between international and domestic gold prices, and prevent negative impacts on exchange rates, interest rates, the monetary and foreign exchange market, and the safety and security of the national financial and monetary system, as well as adverse effects on macroeconomic stability.

The Prime Minister also ordered the State Bank to intensify inspections and examinations to detect and strictly handle violations, especially manipulation, hoarding, and profiteering, illegal business activities, and other practices that disrupt the gold market.

The Prime Minister’s instructions come amid a continuous rise in gold prices over the past two weeks.

At the regular Government meeting for August held on September 6, Deputy Governor Doan Thai Son attributed the recent gold price hike to three main factors. Firstly, the global gold price has been surging. Secondly, market expectations and psychology anticipated further increases in gold prices, leading to a surge in gold demand from the public. Additionally, the supply has been affected as the management mechanism for gold is in the process of transitioning to a new model, causing a temporary halt in the sale of SJC gold bars by the State Bank.

According to the State Bank’s data, the demand for gold reserves among gold enterprises is not high, as gold, unlike other commodities, incurs significant capital costs, making it impractical for storage.

Regarding the gold market situation, the Deputy Governor mentioned that the State Bank has concluded an inspection of all major gold enterprises and commercial banks with significant gold business operations. They are now in the process of implementing the inspection conclusions.

Following the Prime Minister’s directives, the State Bank will enhance inspections and work with relevant ministries and sectors to address any violations. Most importantly, they will urgently implement solutions to manage the gold market according to the new mechanism approved by the Government.