VIETNAM’S central bank will sell gold to the domestic market through four state-owned banks starting on Monday (Jun 3) to help narrow the gap between domestic and international prices, the central bank said.
The move is a change in the State Bank of Vietnam (SBV)‘s efforts to manage gold prices, deputy governor Pham Quang Dung told the central bank’s Thoi Bao Ngan Hang newspaper.
“The gap between domestic and international prices will be narrowed sustainably,” Dung said.
Dung said the price of gold to be sold to the four banks would be determined by the central bank, based on international prices, according to the report, which did not name the banks.
Other state media reports said the banks involved were VietinBank, Vietcombank, BIDV and Agribank. The SBV holds majority stakes at the first three banks, while Agribank is wholly-owned by the government.
The SBV has held several gold auctions since late April to increase gold supplies, but Dung said domestic prices remained 20 per cent higher than international prices.
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The central bank sold 48,500 taels of gold (around 1.8 tonnes), just half of the gold it offered at the auctions. One tael is equivalent to 37.5 grams or 1.21 troy ounces.
It said last weekend that it would halt the auctions. REUTERS
