At the questioning session with Governor of the State Bank of Vietnam Nguyen Thi Hong this morning, many National Assembly deputies shared concerns about gold market management.
Stabilize Vietnamese Dong, ignore gold hoarding mentality
Delegate Duong Khac Mai (Dak Nong delegation) was concerned about the difference between domestic and international gold bar prices. In reality, the gold market is still not really stable, lacks sustainability, has potential risks, and impacts the foreign exchange market.
Delegate Duong Khac Mai. Photo: QH
“Gold prices are racing to new highs, making those who want to own them dizzy and giving management agencies a headache. Could you please tell us, Governor, what solutions can we use to make people feel secure about the stability of the Vietnamese Dong, thereby giving up the mentality of saving, speculating, and hoarding gold, and devoting resources to national development?”, the delegate asked.
Sharing with delegate Mai about the market not being really stable, Governor Nguyen Thi Hong said that gold is currently a headache for the world. “Before the bank intervened, the international gold price was 2,300-2,400 USD/ounce, now it has increased to over 2,700 USD/ounce. If calculated from the beginning of the year until now, the international gold price has increased by more than 50%,” Ms. Hong said.
The Governor continued to affirm that the State Bank's intervention in the gold market aims to narrow the gap between domestic and international gold prices. On the other hand, if the gap is high, when people's demand increases as in the past, it will lead to gold smuggling.
“Therefore, we intervened and reduced the difference between domestic and international gold prices to 3-4 million VND/tael,” Ms. Hong explained.
Governor Nguyen Thi Hong.
The Governor also said that gold prices are still fluctuating up and down and are not really stable, due to objective factors of the world economy. In addition, gold prices are also very dependent on variables of the world financial market, from interest rates, exchange rates to oil prices...
“We will continue to closely monitor market developments and also consider intervention solutions based on the monetary policy goals in the coming time,” said Ms. Hong.
In addition to summarizing Decree 24 to propose appropriate solutions, in the long term, the Governor continued to affirm the general view of the State Bank, as well as the anti-gold policy, which is to make "gold not an attractive commodity for investment and speculation".
"As for buying gold for accumulation according to Asian tradition, the State Bank will have solutions to evaluate the supply of gold to the market and come up with appropriate solutions," the Governor said.
Discourage people from holding gold
Delegate Tran Thi Thanh Huong (An Giang delegation) raised the question that recently, there have been opinions that because many ministries and branches participate in management and coordination is not good, the effectiveness of gold market management is not high.
The delegate asked the Governor of the State Bank to provide his views and solutions to more effectively address this issue in the coming time.
Delegate Tran Thi Thanh Huong, An Giang delegation.
In response to the question, Governor Nguyen Thi Hong affirmed that when people invest in gold, their assets will “lie dead” there. Ms. Hong emphasized that when implementing anti-gold, “people are not encouraged to hold gold”. Because when holding gold, which has a very large value, it also means that people cannot use that amount of money.
But if this asset is converted into Vietnamese Dong, then there will be opportunities to do business and invest in other areas, such as depositing money in the bank, so that the bank can use that money to lend for production and business, or invest in shares, stocks, and the stock market to serve production and business.
Therefore, the Governor of the State Bank believes that the spirit of Decree 24 (managing gold trading activities) is also to combat gold-ization, discouraging people from holding, especially gold bars, because gold bars have high value.
That is why the State has a policy of monopolizing the production and import and export of gold bars, and strictly managing the business of buying and selling gold bars.
"Currently, we are evaluating and summarizing Decree 24 in accordance with the spirit stated by the National Assembly delegates, and will design solutions to limit gold holdings," said Ms. Hong.
Vietnamnet.vn
Source: https://vietnamnet.vn/se-danh-gia-de-cung-ung-vang-ra-thi-truong-va-dua-ra-giai-phap-phu-hop-2340854.html
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