Prime Minister decides on buying and selling gold bars
Yesterday (March 4), Prime Minister Nguyen Tan Dung signed Decision16/2013/QD-TTgon the purchase and sale of gold bars in the domestic market by the State Bank of Vietnam.
Accordingly, based on the objectives of monetary policy in each period, the State Bank buys and sells gold bars to intervene and stabilize the domestic gold market and is allowed to buy gold bars to supplement the State's foreign exchange reserves.
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The State Bank shall buy and sell gold bars with credit institutions and licensed enterprises according to the gold bar buying and selling plan in each period.
The determination of the buying and selling prices of gold bars on the domestic market by the State Bank with credit institutions and licensed enterprises shall comply with the regulations of the State Bank in accordance with each form of buying and selling gold bars as prescribed.
The Decision also stipulates that the Governor of the State Bank decides on gold market intervention plans according to regulations.
In particular, the State Bank's plan to buy or sell gold bars to intervene in the gold market in each period includes the following contents: Time of purchase and sale; volume of gold bars purchased and sold; form of purchase and sale; subjects of purchase and sale; specific purchase and sale prices suitable for each form of purchase and sale; other related contents.
Regarding the form of buying and selling gold bars, the State Bank will choose and decide specifically on buying and selling gold bars in each transaction according to 1 of 2 forms: Buying and selling gold bars directly or buying and selling gold bars through bidding.
The Decision also clearly states that when buying and selling gold bars in the domestic market, the State Bank is allowed to open accounts, buy and sell gold on foreign accounts or buy gold abroad to import gold to supplement the State's foreign exchange reserves or sell gold abroad.
The State Bank is responsible for ensuring the safety of State foreign exchange reserves by complying with regulations on the structure, standards, and investment limits of State foreign exchange reserves when buying and selling gold bars.
The State Bank will also decide on the application of exchange rates and gold prices to convert to US dollars and Vietnamese dong to serve accounting purposes and reflect fluctuations in exchange rates and gold prices in the domestic and international markets.
According to (vov.vn) - LT
