HANOI (Commodity Online) : In a significant move Vietnam’s central bank, the State Bank of Vietnam (SBV) said it will allow Gold dealers to import more gold to cool down spiraling prices in the country.
The SBC however didn’t make public the quantity of gold it would allow dealers to import this week, making it difficult for them to calculate how much dollar required for the purchase.
The central bank also set the dollar’s exchange rate at VND20,628 Wednesday, unchanged from Tuesday.
At the same time, the exchange rate between the Vietnamese dong and the US dollar also spiked dramatically on the black market, rising to VND21,300 per dollar, even as interbank and official rates remained at VND20,628 and VND20,834, respectively.
SBV also revealed that the central bank would submit its final draft of a decree on the gold market to the Government for approval this week.
Under the draft, the State Bank would control and intervene in the gold market if needed, preventing speculation and price manipulation. Trading in Gold bars would also be restrained.
Individuals and organisations who wanted to do business in gold jewelry or artworks would be required to establish enterprises and meet several stringent requirements
Meanwhile, the central bank has warned investors to be wary of speculation and manipulation when trading in gold.
Gold prices in Vietnam fluctuated in the last two days after global prices dropped to its lowest level in weeks to just $1,532.45 per ounce from a record high of $1,920 per ounce on September 6.
On Monday Vietnam gold prices climbed up after plummeting to VND43 million ($2,067.30) per tael. Domestic gold price quickly soared to VND45 million ($2,163.46) per tael – VND4 million ($192.3) per tael above the global price. (One tael is equivalent to 1.2 ounces).
The new gold imports, by increasing supply, were expected to help stabilise some of these fluctuations.