Minister of Finance proposes solutions to control gold and foreign currency markets

On the morning of March 18, at the 31st session of the National Assembly Standing Committee, National Assembly Delegate Huynh Thi Phuc ( Ba Ria - Vung Tau Delegation) reported that recently, many smuggling and tax evasion cases across the border have been very complicated and sophisticated, involving gold and foreign currency, affecting the Vietnamese market.

Delegates asked the Minister of Finance to clarify solutions to control the gold and foreign currency markets?

Finance - Banking - Minister of Finance proposes solutions to control gold and foreign currency markets — National Assembly Delegate Huynh Thi Phuc questioned.

Responding to the content about the high price of gold and foreign currency, Minister of Finance Ho Duc Phoc said that this issue is the responsibility of the State Bank, not the Ministry of Finance.

However, the Ministry of Finance has the responsibility to combat smuggling and trade fraud, which means managing the border area so that when the price of gold and foreign currency in Vietnam increases, smuggled goods do not enter Vietnam. The Ministry of Finance has tightened the border gates to manage this amount of gold and foreign currency.

Recently, a number of cases of USD and foreign currency transfers have been caught domestically and internationally, such as the transfer of 1.6 billion USD to South Korea or the investigation and handling of 3,700 billion VND or 1 million USD faked through air transport. Therefore, the Ministry of Finance is tightening this issue.

To reduce the price of gold and USD, Mr. Phuc said that, in his personal opinion, it is necessary to implement a series of solutions such as gold related to supply and demand, import and export. So should we import gold or not? Or how to tighten the buying and selling?

Mr. Phuc also raised the issue of taking advantage of the psychology of ineffective investment in production and business, low interest rates in banks, so that this money flows into gold or not?

Mr. Phuc pointed out that a series of new solutions are needed to prevent the increase.

Finance - Banking - Minister of Finance proposes solutions to control the gold and foreign currency markets (Figure 2). — Minister of Finance answers questions.

Regarding the USD price, the minister pointed out that it shows the strength of the currency. However, when the Vietnamese currency depreciates, it can also benefit exports, but what is the impact on exports?

Or the issue of currency, how to keep the exchange rate against the USD from depreciating, according to Mr. Ho Duc Phoc, Governor of the State Bank will answer further.

Previously, concluding the regular Government meeting in February, Prime Minister Pham Minh Chinh requested the State Bank to promptly submit amendments to Government Decree 24 on the management of gold trading activities.

In Directive No. 06 dated February 15, 2024 on urging the implementation of key tasks after the 2024 Lunar New Year holiday, the Prime Minister also requested the State Bank to urgently summarize Decree 24 and propose solutions for effective management of the gold market in the new situation in the first quarter of 2024.

At the end of 2023, the Prime Minister also issued an Official Dispatch directing the State Bank on this content, requesting the State Bank to urgently have effective solutions to manage and operate domestic gold bar prices according to market principles; not to let the gap between domestic and international gold bar prices be high .

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