Banks do not buy, where do people sell gold?

DNVN – National Assembly Delegate Pham Van Hoa (National Assembly Delegation of Dong Thap Province) asked the Governor of the State Bank Nguyen Thi Hong, the bank only sells but does not buy gold, so where can people sell gold due to cash needs? If the bank does not buy, other gold shops will not buy either.

On the morning of November 11, continuing the 8th Session, the National Assembly conducted questions and answers on the first group of issues in the banking sector. Questioning the Governor of the State Bank, National Assembly delegate Luu Van Duc (National Assembly delegation of Dak Lak province) asked the Governor of the State Bank Nguyen Thi Hong to inform what solutions the banking sector has implemented to stabilize and manage the gold market.

National Assembly Delegate Pham Van Hoa (National Assembly Delegation of Dong Thap Province) asked if banks only sell but do not buy gold, so where can people sell gold due to cash needs? If banks do not buy, other gold shops will not buy either. On the other hand, banks only sell gold in Hanoi and Ho Chi Minh City, why not sell it in other provinces and cities across the country?

National Assembly Delegate Pham Van Hoa (National Assembly Delegation of Dong Thap province) asked a question before the question and answer session.

Responding to questions from National Assembly delegates, Ms. Hong said that the fluctuations in Vietnam's gold market are also a common trend in other countries around the world. From 2014 to 2019, the Vietnamese gold market was relatively stable and people's demand for gold decreased. But from 2021, the world gold price increased, accordingly, the domestic gold price also increased.

However, from 2021 to June 2024, the State Bank has not intervened. From June 2024, the world gold price reached its peak, the difference between the world gold price and domestic gold price increased. Therefore, the Government and the State Bank have directed strongly.

Based on the current law, the State Bank organized the auction. In the context of the peak gold price and high market expectations, the State Bank considered 9 auctions (this was a quite effective solution in 2013).

In order to quickly narrow the gap between domestic and international gold prices at a high level under the Government's drastic direction, the State Bank has switched to selling SJC gold directly through 4 State Commercial Banks. Therefore, the gap between domestic and international gold prices has decreased from about 15-18 million VND/tael to only about 3-4 million VND/tael.

“The gold market continues to be complicated and unpredictable. Our country does not produce gold, so intervention depends entirely on international gold imports. Therefore, the State Bank will closely monitor market developments and introduce appropriate policies to stabilize the gold market,” Ms. Hong said.

State Bank Governor Nguyen Thi Hong answers questions from National Assembly deputies before the question-and-answer session.

Regarding the banking sector's support activities for people and businesses affected by storm No. 3, National Assembly delegate Ma Thi Thuy (National Assembly delegation of Tuyen Quang province) asked the Governor of the State Bank to inform about these support policies.

Responding to delegate Ma Thi Thuy, the Governor of the State Bank said that after storm No. 3 occurred and had serious impacts on businesses and people in 26 provinces and cities, the State Bank sent leaders of the State Bank to directly survey Hai Phong and Quang Ninh provinces. The banking industry determined that the outstanding debt of these two provinces affected by the storm was about 12,000 billion VND.

On that basis, the State Bank has directed credit institutions to focus on implementing solutions to remove difficulties for businesses and people such as restructuring debt repayment terms and maintaining debt groups according to current regulations. The State Bank also directed credit institutions to consider reducing interest rates for businesses and people affected by storm No. 3.

In addition, each credit institution also considers and reviews its capital balance to offer credit packages. Up to now, 35 credit institutions have announced a total credit package value of VND 405,000 billion to continue providing new loans to affected businesses and people as well as more preferential loan interest rates.

Ha Anh

Source: https://doanhnghiepvn.vn/kinh-te/ngan-hang-khong-mua-dan-ban-vang-o-dau/20241111100705848