Not excluding speculative behavior, pushing up gold prices

On the afternoon of May 29, after the socio -economic discussion, Governor of the State Bank of Vietnam Nguyen Thi Hong explained and clarified the opinions raised by National Assembly deputies.

Not excluding speculative behavior , pushing up gold prices

Regarding the gold market, Governor Nguyen Thi Hong said that high and complicated fluctuations in gold prices are common in countries around the world , not just in Vietnam.

Domestically, gold prices fluctuated and moved in the same direction as world gold prices. However, the gap between domestic and international gold prices widened, especially for SJC gold.

In that context, the Government and the Prime Minister are very concerned and have given many strong instructions to the State Bank and ministries to perform their functions as prescribed in Decree 24/2012 to narrow the gold price difference.

"Narrowing the gap in gold prices is a very challenging task. Because we are doing it in a context where international gold prices are constantly fluctuating and complicated," Ms. Hong said, adding that the State Bank has increased gold supply to the market and conducted bidding.

Governor of the State Bank Nguyen Thi Hong (Photo: Quochoi.vn).

The bidding method was inherited from 2013 with the expectation of increasing the supply of gold to the market and the price also gradually decreasing. However, after 9 bidding sessions, the price difference did not decrease as expected, so the bidding was stopped.

The State Bank has assessed the situation and found out the causes and built a new plan and will start implementing it next week to reduce the gold price difference in the coming time.

In addition, the Governor also mentioned the transparency of gold market transactions. The State Bank has decided to establish an interdisciplinary inspection team to comprehensively inspect all aspects of invoices, documents, and anti-money laundering transactions related to gold transactions.

According to the Governor, recent fluctuations in the gold market have not excluded illegal acts of speculation, hoarding, and price manipulation.

Regarding exchange rates, according to Ms. Hong, the exchange rate is under increasing pressure due to the general developments in countries around the world and the region. In addition, many currencies in the region are depreciating at a relatively high rate.

“The State Bank believes that in such a volatile economic environment, exchange rates sometimes increasing and sometimes decreasing are completely normal. In the past, foreign currency sources were mainly supplied for import and domestic production needs. Therefore, in the coming time, the return of production development as well as increased exports will support foreign currency supply and demand,” Ms. Hong said.

According to the Governor, the Fed's operating interest rate may be adjusted down by the end of the year. Many forecasts show that the exchange rate will cool down by the end of the year.

There will be new solutions to stabilize the gold market.

Speaking later, Deputy Prime Minister Le Minh Khai said that the world gold market has been on an upward trend recently, so the domestic market has also fluctuated accordingly.

However, the gap between domestic and world gold prices for SJC gold bars has increased. Since June 2022, the Government and the Prime Minister have closely directed the State Bank.

Deputy Prime Minister Le Minh Khai (Photo: Quochoi.vn).

To date, the Deputy Prime Minister has counted 25 documents, including tools to intervene in the gold market, to stabilize the gold market and at the same time inspect, check and control.

Recently, the State Bank has also actively implemented a number of solutions. However, when intervening in the gold market, the effectiveness has not been high. Therefore, in the short term, the State Bank is currently re-evaluating and will have new plans to stabilize the gold market.

In the long term, we will also study and amend Decree 24 so that we have a long-term solution.

“In the immediate future, we will use the State management tools of inspection and examination to “substantially” evaluate the activities of the gold market. Thereby, we will have solutions to handle the situation according to current legal regulations, bringing the gold market to a stable state in the spirit that the delegates wish for, that is, the domestic gold price will be closer to the world market,” said the Deputy Prime Minister .

Source: https://www.nguoiduatin.vn/thong-doc-nhnn-khong-ngoai-tru-hanh-vi-dau-co-day-gia-vang-a665933.html