State Bank temporarily stops selling SJC gold to the market

(Dan Tri) - Deputy Governor Doan Thai Son said one of the reasons for the recent increase in gold prices is the scarcity of domestic supply as the State Bank of Vietnam (SBV) temporarily stopped selling SJC gold to the market.

At the Government meeting on September 6, Deputy Governor of the State Bank of Vietnam Doan Thai Son explained that the recent increase in gold prices was due to the very high increase in world gold prices. At the same time, the expectation and psychology of the market that gold prices will continue to increase has caused people's demand for gold to increase very high.

Specifically, according to the Deputy Governor, in the past week, the world gold price has skyrocketed, converted to Vietnamese currency, it has increased by more than 3 million VND/tael. At the same time, information about the increase in gold price, creating a widespread expectation that gold price will break the peak of 3,500 USD/ounce, causing the demand for gold to increase sharply.

Another reason pointed out by Mr. Son is the scarcity of domestic supply due to the State Bank temporarily stopping the sale of SJC gold to the market in the context of transitioning to a new management mechanism.

Previously, at the regular Government meeting in August, Prime Minister Pham Minh Chinh said that the fluctuations in gold prices were very noticeable. The head of the Government said that he had directed the relevant agencies to take action to prevent market manipulation, hoarding, and price hikes.

Regarding the Prime Minister 's direction, the Deputy Governor affirmed that the State Bank will strengthen inspections to clarify this matter, and at the same time, work with relevant ministries and branches to handle violations, if any.

Mr. Son emphasized that the most important thing is to soon implement solutions to manage the gold market according to the new mechanism approved by the Government.

Deputy Governor Doan Thai Son (Photo: VGP).

Deputy Governor Doan Thai Son also informed that as of August 31, the average lending interest rate was 6.38%, down 0.56% compared to the end of 2024. However, the general trend is fraught with risks.

Outstanding credit balance at the end of August reached 17.14 quadrillion VND, up 11.08% compared to the end of last year. If calculated for the whole year, credit increased by about 20.19%, the highest level in many years, while normally it is only about 14.5%.

The deputy governor said this would have two consequences. First, banks would be forced to increase capital mobilization, which would likely push up deposit interest rates, and then lending interest rates. Second, strong credit growth would mean more money supply, causing inflationary pressure in the long run.

Meanwhile, especially in August, the exchange rate was under a lot of pressure. USD interest rates remained high while VND interest rates were low, creating a trend of capital transfer. In addition, foreign loan disbursement decreased, but the need to repay debt increased.

In response, the State Bank said it would flexibly manage exchange rates, coordinate with interest rate and liquidity tools, and be ready to sell foreign currencies when necessary. As of September 4, the exchange rate was 26,380 VND/USD, down 0.09% compared to August 22 - the time the agency intervened, but still up 3.45% compared to the end of 2024.

Source: https://dantri.com.vn/kinh-doanh/ngan-hang-nha-nuoc-tam-thoi-dung-ban-vang-sjc-ra-thi-truong-20250906183753532.htm