The State Bank of Vietnam continues to advise about rumours of currency changes

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There has been an increase in the difference between SJC gold price in the country and gold price in the world, sometimes up to 4,4 million vnd per tael. Photo: H. Diu

Talking to the press on the situation of the gold market in recent days, Director of the Foreign Exchanges ManagementDepartment of SBV,Mr. Nguyen Ngoc Canh said: although from the end of November to now, the difference between the SJC gold price in the country and the gold pricein the world has increased, sometimes up to 4,4 million vnd pertael, but the difference between the domestic raw gold pricewith the converted world gold price (without charges) has just been below 1 million vnd per tael.

Moreover, the gold market has been stable and the volume of goldbuying and selling per day has remained at a low rate and continued to decrease by 20% compared to the same period of 2015 and there has not been a situation where people queued to buy gold as in the previous period.

According to Mr. Nguyen Ngoc Canh, the cause of such a high difference of gold price is the decrease of the world gold pricewhile the USD continued to rise against other major currencies, and the high increase of the US bond and optimism about the outlook for financial markets by the majority of investors, when there has been a lot of information showing that the US Federal Reserve System (Fed) is likely to raise interest rates in the periodic policy meeting at the end of this year ( on 13th and 14th December, 2016).

At present, the world gold price is at $US 1,170 per ounce which is the lowest rate in the last ten months, decreasing $US 167 per ounce against the highest rate set on 9 November, 2016 when Mr. Donald Trump was elected as US president.

Meanwhile, because previously, enterprises and people bought gold at high prices anddo not want to sell, although the domestic gold price also dropped in compliance with the decrease of the word gold price, the decrease was still ata slower pace and in a narrower range, from 37 million vnd per taeldown to 36.62 million vnd per tael (down by 380 thousand vnd pertael

Before this situation, the representative of the SBV assured that they will continue to closely monitor the market movementsand be ready to issue solutions and have sufficient resources to intervene in the gold market when required. The intervention to stabilize the gold market will be implementedin line with the policy of gold market management in the orientation of Decree 24/2012/ND-CP of the Government.

Concerning the rumors of currency changes, the Director of the Foreign Exchanges Management Department of SBV continued to confirm that this information is fallacious.

Therefore, Mr. Nguyen Ngoc Canh advised people to be careful in making decisions on buying and selling gold in order to avoid unnecessary risks.

The SBV has been closely monitoring the performances of the macro economy and currencies in the country and in the world to have sufficient resources and tools to be ready to intervene and stabilize the gold market.

Vietnam may tap foreign reserves to bolster currency: central bank The State Bank of Vietnam stands ready to stabilize the dollar/dong exchange rate by selling foreign currency.

In addition, to ensure the strict observance and implementation of the provisions of the law on foreign exchanges, MrCanh said, the SBV has directed the SBV’s branches in provinces and cities to strengthen inspections and supervisions of foreign exchange operations in theseareas and continue to collaborateclosely with relevant ministries and departments to detect and strictly handle violations in the gold trade.