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VietNamNews

Central bank eyes gold sale to stabilise market

Update: May, 08/2013 - 09:52

The State Bank of Viet Nam stated that it would pump about 10 tonnes of bullion gold into the market if needed in order to stabilise the market.— VNS File Photo

HA NOI (VNS)— The State Bank of Viet Nam stated that it would pump about 10 tonnes of bullion gold into the market if needed in order to stabilise the market.

The domestic gold price has fallen for six consecutive days to its lowest level in the past three weeks. Yesterday, the selling price of DOJI Group fell to VND41.68 million per tael while the buying price was VND41.44 million per tael.

In HCM City, each tael cost from VND41.42- 41.67 million, about VND4.4 million higher than the world price. A representative from the SJC Company told the Saigon Economic Times that gold purchasing power has been low despite the decreasing prices.

He said investors have been hesitant to buy gold, as all banks will soon be forced to stop mobilising or lending gold.

The central bank has been selling gold through auctions. Yesterday, SBV organised its 14th auction of gold bars, where 26,000 taels were up for sale.

The bank set the reference price at VND41.50 million per tael, about VND50,000 higher than the buying price and about VND200,000 lower than the selling price on the market.

Commercial banks were the major buyers at the auction, attended by 11 enterprises and banks – eight of which bought gold bars.

To date, 392,900 taels (15.11 tonnes) have been sold out of 432,000 offered.

Economist Vu Dinh Anh told online newspaper infonet that the difference between the domestic and world gold price was not a concern, adding that analysts should instead pay attention to the difference between the buying and selling prices.

Anh said people would benefit from a high difference between the buying and selling prices.

He added that the central bank's current goal was to stabilise the gold market, not narrow the gap between the domestic and world gold prices.

In another move, the Ministry of Finance announced yesterday that the Prime Minister had decided to make raw gold materials exempt from export taxes and gold import duties.

The ministry said the decision would help the central bank export and import gold bars while ensuring raw materials for bullion production.

Under Circular No 184, an export tax rate of 10 per cent was imposed on gold of purity between 90 and 99.99 per cent and gold jewellery of above 99 per cent purity. — VNS



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