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Gold auctions were handled legally: SBV

Update: October, 02/2013 - 08:23

Management, revenues and expenditures from gold auctions were precisely handled pursuant to laws, announced the State Bank of Viet Nam in an attempt to counter the public's doubts about the transparency of the activities.— Photo vietstock

HA NOI (VNS) — Management, revenues and expenditures from gold auctions were precisely handled pursuant to laws, announced the State Bank of Viet Nam in an attempt to counter the public's doubts about the transparency of the activities.

From March 28 to the end of last week, the central bank already sold 1.611 million taels of gold (59,87 tonnes) to the market through 61 auctions, generating VND6.834 trillion (US$323.28 million).

Without releasing the percentage of total revenue going to the State's budget, the central bank affirmed that they fully complied with their legal obligations and responsibilities.

"The State Bank doesn't subsidise or compensate for the losses of attendees. The auctions are bound to the law so as to secure the State's interest in this measure," Nguyen Quang Huy, head of the foreign exchange management said.

The central bank has established a team to carry out gold auctions with members from various departments and offices under the agency to ensure proper implementation and objectiveness.

In order to prevent speculation and price manipulation, the SBV reviews the daily reports from credit institutions and enterprises on their activities related to gold auctions.

The latest updated reports showed that 18 credit institutions were able to settle gold deposits with the first 30 tonnes (equivalent to 50.1 per cent of total auctioned gold bars).

The remaining supply of gold, around 29 tonnes, far below the range of 50-100 tonnes imported each year, was sold on the market by the winning bidders.

The department has conducted regular inspections of the 2,500 licensed retail points in the country to ensure prices are transparent and in compliance with regulations.

The SBV also said banks must keep a record of ID for clients who carry out gold transactions worth more than VND300 million ($14,285) under Government Decision 20/2013/QD-TTg, to prevent money laundering.

Responding to concerns that the pressure of gold auctions might add to exchange rates and inflation, Huy said that the central bank's market management prevented such impacts and helped stabilise the macro economy. — VNS

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