Gold in the people is dead gold, people are not encouraged to keep gold.

(Dan Tri) - Governor Nguyen Thi Hong said the policy is still to fight against gold and dollarization, thus discouraging people from holding gold, especially high-value gold bars.

On November 11, Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong answered questions from National Assembly deputies about the banking sector. Ms. Tran Thi Hong Thanh, Deputy Head of the Ninh Binh delegation, mentioned that one of the problems of the gold market is that people have not been encouraged to sell gold and convert it into Vietnamese Dong (VND) to invest in production and business. "Gold lying idle among the people is dead gold, while the demand for capital in production and business is very large. What solutions should be focused on in the coming time to make gold a resource for the economy?" Ms. Thanh questioned.

Governor Nguyen Thi Hong (Photo: Quochoi.vn).

Responding to delegates, the Governor said that the policy is to fight against gold and dollarization, so people are not encouraged to hold gold, especially high-value gold bars. Because when holding gold, the value may be large, but when holding it, people cannot use that money. If gold is converted to VND, there will be opportunities to do business, to invest in other areas such as depositing money in banks, so that banks can use that money to lend for production and business. Or the money can be invested in shares, stocks, and the stock market to serve production and business. Therefore, the State Bank, in the spirit of Decree 24, does not encourage people to hold gold. This is also the reason, according to Governor Nguyen Thi Hong, the management agency has issued a policy of the State monopolizing the production, import and export of gold bars and strictly managing the trading of precious metals. The State Bank is evaluating and summarizing Decree 24 to design solutions to limit gold holding among people. Also on this issue, delegate Duong Khac Mai (Dak Nong delegation) reflected that the domestic gold market is currently unstable, with many potential risks affecting the foreign exchange market. The delegate asked the Governor to clarify solutions to stabilize VND so that people can give up the mentality of hoarding gold. In response to this question, Ms. Hong said that the State Bank has intervened to stabilize the gold market with the goal of reducing the gap between domestic gold prices and international gold prices, preventing gold smuggling. However, the gold price is still fluctuating and not really stable due to objective factors from the world economic situation. In addition, domestic gold prices also depend heavily on variables from the international financial market such as interest rates, exchange rates, and oil prices. The Governor of the State Bank affirmed that he will continue to closely monitor market developments, based on the goals and monetary policies in the coming time to consider intervention solutions. Regarding fundamental solutions, the State Bank will coordinate with ministries and branches to evaluate and summarize Decree No. 24, advise and propose to the Government solutions to solve problems, shortcomings and limitations in the past. In the long term, the State Bank's general view is to combat gold-ization, implementing solutions so that gold is not an attractive commodity for speculation.

Dantri.com.vn

Source: https://dantri.com.vn/kinh-doanh/vang-trong-dan-la-vang-chet-khong-khuyen-khich-nguoi-dan-giu-vang-20241111155031797.htm#comment