Vietnam’s central bank plans new gold regulations

IMG Auteur
 
Published : February 27th, 2012
399 words - Reading time : 0 - 1 minutes
( 1 vote, 5/5 ) , 2 commentaries
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
2
comment
Our Newsletter...
Category : Market Analysis

 

 

 

 

Vietnam's economy is facing hard times and the communist government is desperately seeking ways to solve the crisis affecting the country. In the past two years the Vietnamese central bank has taken a series of measures aimed at avoiding further capital flight from the country. Measures taken by the government thus far include greater controls on the gold market. According to estimates there are 300 to 500 tonnes of privately held gold in Vietnam. Nguyen van Binh, governor of the Vietnamese central bank, stated in an interview that he wants “to mobilise gold from the public in service of the socio-economic development.”

The State Bank of Vietnam is keeping a close eye on developments at the national gold market. In order to control the flight from the dong and the outflow of capital from the country, last year the central bank set limits on gold trading and significantly reduced the number of licensed refiners officially allowed to produce gold bars. From November 2011 onwards all companies wishing to continue their operations had to hold a minimum of 500 billion dong in funds and a market share of 25%. These requirements have forced many smaller producers out of business.

In an interview published at the end of January on the State Bank of Vietnam's website, governor Nguyen Van Binh states that the right to private ownership of gold will be upheld, but that the Bank is looking at ways of "mobilising" privately held gold. An increasing number of market observers have been long worrying that Vietnam might be heading towards total prohibition of private gold ownership. Price rises are causing more and more Vietnamese to buy gold as a hedge against inflation. Data published this morning by the General Statistics Office of Vietnam show that in February the Vietnamese Consumer Price Index increased another 1.37% in comparison with the previous month. In comparison with December 2011 this amounts to a 2.37% increase. Almost all sub-sectors registered price increases.

So far, as a direct result of the government's attempts at limiting the national gold trade, gold prices at the black market have continued to increase in relation to the official price fix and the external value of the dong. Recently the country's banks raised the interest on gold deposits. Analysts take this as an evidence that the central bank is trying to control the gold circulating in Vietnam through commercial banks.

 

 

Data and Statistics for these countries : Vietnam | All
Gold and Silver Prices for these countries : Vietnam | All
<< Previous article
Rate : Average note :5 (1 vote)
>> Next article
Comments closed
  All Favorites Best Rated  
It is gold, gold and gold all over. Gold has become the malady and the antidote to all evils that confront the universe. Firstly, kept under a tight leash, later released and now donning the mentle of much sought after anti inflationary hedge with value that doubles as currency. The writing is on the wall. Time and stocks are limited. Go for your gold and hide it for the next big news will be gold robberies.
Rate :   1  2Rating :   -1
EmailPermalink
It should not be. What you have to remember is that since money is part of all transactions, half of the world's business involves money.

When the money is corrupted, so goes society. Gold is not some kind of savior, and is just good for one thing. It is money.
Rate :   1  0Rating :   1
EmailPermalink
Latest comment posted for this article
It should not be. What you have to remember is that since money is part of all transactions, half of the world's business involves money. When the money is corrupted, so goes society. Gold is not some kind of savior, and is just good for one thing. It  Read more
FUBAR - 2/28/2012 at 8:53 AM GMT
Rating :  1  0
Top articles
Latest Comments
The Fed Is Confused about What Drives Inflation
12:21neville
Hi Frank, Thanks for your article.......The fact of the matter is that LIES LIKE EVERYTHING ELSE DRIVES INFLATION , which as it so happens is 'THE'...
What kind of person runs for public office ?
17 OctThemis
I liked the use of the self-actualization chart within the context of politicians and their motives. It probably applies to many in Hollywood as w...
The Silliness of the Bretton Woods Years
16 OctThe Recusant
KUDOS! The book is anti-gold slanted throughout and subtly mocks those that value gold as seen in that silly Las Vegas Golden Rooster tale. As I pr...
The Future (Not)
14 OctS W.-1
I have it on good authority that the Aliens living in Antarctica have discovered a way of turning Ice into Oil. All we have to do to secure ou...
Betrayal!
09 OctThemis1
I agree 100% with all the points you made. You have summarized my own anger and the reasons for it. My only consolation is that I believe the eli...
A silver price-suppression theory gets debunked
07 OctDoom
I think he linked the wrong article, because there's minimal facts and logic there relevant to price suppression. It's a shame, because I really wo...
Light It Up
07 OctThemis
I keep wondering whether the US is fermenting a war with North Korea so as to indirectly draw China in and delay implementation of the yuan-for-oil...
One Nation Under Gold (2017), by James Ledbetter
05 OctThe Recusant1
Sadly, I too hoped for a more even-handed assessment of gold in our economic history. The book IS biased and by the time I got to the 20th century ...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS