Vietnam moves to cool a hot gold market as domestic prices lose touch with global market
The State Bank is looking to stabilise the over heating gold market.
On October 6, the State Bank issued Circular 32/2011/TT-NHNN banning commercial banks’ gold mobilisation and lending activities. According to this circular, commercial banks with enough legal conditions will be allowed to transfer a part of the mobilised gold sources into cash and supplement gold supplies in the market. In addition, those banks can also open maximum two offshore gold accounts to prevent gold price fluctuation risks.
A State Bank representative said that this move aimed to narrow the gap between domestic and international gold prices. Until the end of the third quarter, gold prices have increased by 30 per cent quarter on quarter, equal to a increase of VND10million/tael ($480/1.2 ounce).
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Comments
Simon
I even thought this too.