Yesterday, June 3, the State Bank of Vietnam (SBV) allowed four state-owned commercial banks, including Agribank, BIDV, Vietcombank and VietinBank, to sell SJC gold bars to stabilize the market, but not to buy them back from the people.
The State Bank of Vietnam's permission for the above 4 banks to sell gold bars aims to ensure the implementation of the goal of stabilizing the market according to the direction of the Government and the Prime Minister, thereby reducing the gap between SJC gold bars and world gold prices. Accordingly, the State Bank of Vietnam will sell gold directly to 4 State-owned commercial banks so that these banks can sell gold directly to people based on world gold prices, not for business purposes. In the recent past, the State Bank of Vietnam has organized 9 auctions, supplying the market with 48,500 taels of SJC gold, equivalent to more than 1.8 tons of gold. However, the gap between domestic SJC gold bar prices and world gold prices remains high (about 20%). This shows that, in addition to market factors such as supply and demand relations, manipulation, price fixing, and destabilizing the gold market. Therefore, the State Bank will sell gold directly to 4 commercial banks so that these banks can sell gold directly to the people. The goal is to soon narrow the gap between domestic and world gold prices to a suitable and sustainable level. At this time, 4 State-owned commercial banks have announced the time, location and method of selling SJC gold bars to the people, initially in Hanoi and Ho Chi Minh City. The new measure of the State Bank is taken in the context that recent auctions have not been effective in reducing the gap between gold bar prices and the world. With the resources and tools available, the State Bank has enough capacity and determination to stabilize the market, the gap between domestic and world gold prices will quickly be narrowed in a sustainable manner. In parallel with this measure, the State Bank of Vietnam is also coordinating with the Ministry of Public Security, the Ministry of Finance, the Ministry of Industry and Trade and the Government Inspectorate to inspect the compliance with the law in gold trading activities of credit institutions and enterprises and will resolutely and strictly handle any violations of the law if any. The system of these 4 commercial banks is spread across the provinces of the country, including Binh Thuan province, which also has 4 State Commercial Banks. Currently, the above commercial banks will soon complete their licenses as well as prepare locations for selling gold to officially sell gold to people when the State Bank allows it. It is worth mentioning here that the selling price of gold bars will be publicly announced on the official websites of State Commercial Banks for people to easily follow. With the responsibility of State Commercial Banks, the banks ensure to supply the legitimate needs of the people, not setting profit targets but only supplying at appropriate prices based on the purchase price from the State Bank. State-owned commercial banks permitted by the State Bank to sell gold bars have all confirmed that they are ready to sell gold bars directly to the people, and will have official information about this on their websites.
In fact, right after the State Bank announced the sale of gold to 4 State-owned commercial banks to supply to the people, the price of gold in the market dropped sharply. As the State Bank is the sole and exclusive supplier of SJC gold in the market, when this organization announced the sale of SJC gold at a price to ensure the difference in world gold prices, the domestic price of SJC gold must certainly decrease. In addition, the fact that the State Bank sells gold directly through 4 State-owned commercial banks is a positive sign, contributing to increasing the supply of gold bars to the market. With this new method, the price of SJC gold bars will certainly decrease gradually because it is no longer manipulated and pushed up too much like in the recent past. Hopefully, with the 4 State-owned commercial banks participating in selling SJC gold bars directly to the people, there will be no more queuing to buy gold like before at businesses in the past, and at the same time, the domestic gold price will be stabilized.
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