Flexible regulations on buying and selling non-SJC gold bars

Depending on actual conditions, if necessary, the State Bank (SBV) may consider buying and selling other types of gold bars that have been permitted for production in different periods. The specific type of gold bars traded will be notified to credit institutions and enterprises in the notice of buying and selling gold bars or in the notice of bidding...

Circular 06 is expected to resolve concerns about the "only buy SJC gold" mentality that has dominated the market for a long time.

This is a notable content in Circular 06 guiding the buying and selling of gold bars in the domestic market of the State Bank, which took effect from March 13.

Speaking to reporters of the Government Electronic Newspaper on the afternoon of March 13, a representative of the Foreign Exchange Management Department (SBV) said that after the trial auction of gold bars with credit institutions and businesses licensed to buy and sell gold bars, the SBV has received comments, revised and completed the draft Circular 06 before signing and promulgating it to ensure that the bidding process for buying and selling gold bars will operate effectively.
Therefore, the regulations on buying and selling SJC and non-SJC gold bars in Circular 06 are quite flexible.

Specifically, Circular 06 stipulates that the type of gold bars traded for buying and selling with the State Bank is 99.99% gold bars, 1 tael type that the State Bank permits to produce or organizes production in different periods.

The State Bank may consider buying and selling other types of gold bars that the State Bank has permitted to be produced during periods. The form of buying and selling can be direct or through bidding by price or bidding by volume.

A representative of a gold trading unit in Hanoi said that with the State Bank accepting the purchase and sale of non-SJC gold bars, including gold brands such as Rong Thang Long, PNJ-DAB, Sacombank-SBJ... which have been licensed and circulated by this agency before, it will ensure fairness and non-discrimination between types of gold bars. This is a good signal for the market when people and businesses that still hold and trade non-SJC gold bars do not have to buy or sell at a price that is millions of dong cheaper per tael than SJC gold bars, and it also solves the concern that during the past time, the mentality of "only buying SJC gold" has dominated the market.

According to Dr. Nguyen Tri Hieu, the regulations in Circular 06 will help people have more choices in gold bar brands, and businesses will have more liquidity. Moreover, the goal of stabilizing gold prices can be achieved, because when SJC sees other brands selling at low prices, it will also have to compete to lower prices.

However, according to the representative of the State Bank, in order to serve the transaction needs with credit institutions and enterprises licensed to trade, buy and sell gold bars in large quantities and in short periods of time, this agency will prioritize the use of SJC gold. As for the purchase and sale of non-SJC gold bars between credit institutions and enterprises licensed to trade gold bars with the State Bank, this agency will consider the appropriate form because there are currently many different gold bar brands on the market, so it takes a long time to appraise and it is difficult to bid directly with large volumes.

Accelerate the conversion to SJC gold

Regarding the handling of raw gold sources such as dented SJC gold, non-SJC gold; the "temporary export, re-import" of gold in the past time, the representative of the State Bank said that SJC Company is continuing to process SJC gold from dented SJC gold and non-SJC gold bars under the close supervision of the State Bank. In addition, the State Bank has organized the implementation of the "temporary export, re-import" plan to speed up the process of converting non-SJC gold into SJC gold to meet the payment needs of SJC gold for people of credit institutions, which means temporarily exporting non-SJC gold and re-importing international standard raw gold.

This amount of “temporarily exported and re-imported” gold is non-SJC gold bars that people have been depositing at credit institutions in the past. The State Bank has conducted an actual inventory check of this gold before allowing it to be implemented. At the same time, credit institutions are not allowed to collect any fees when paying this amount of gold, which has been converted into SJC gold, to people.

Basically, this plan is to convert non-SJC gold bars into international standard raw gold, so it does not create foreign currency demand to import gold and therefore does not create pressure on the foreign exchange market, does not cause fluctuations in exchange rates. The entire amount of imported international standard raw gold is processed into SJC gold bars to meet the demand for gold payment for people at credit institutions.

According to (Chinhphu.vn) - LT