The State Bank of Vietnam (SBV) will use a part of its current deposit insurance fund for foreign currencies and gold after starting to mobilize gold bullion from the citizens, said a SBV official.
The fund will only be used in case of mass gold withdrawal when gold prices hike, the official who wants to remain anonymous told Tien Phong newspaper.
"The central bank will raise gold through credit institutions," he said.
It is expected that the SBV will submit the scheme for mobilizing gold from the citizens to the Government in the middle of Q2/2012, according to Tien Phong.
The scheme, drafted by relevant state bodies, has been sent to commercial banks and other credit institutions for comments and feedback.
The State Bank of Vietnam (SBV) was ready to submit the scheme to the government to mobilize gold from citizens to prevent speculation, stabilize the market, regulate local prices and facilitate economic development, SBV governor Nguyen Van Binh told Vietnam News Agency on Monday.
According to SBV's assessment, the citizens hold large amount of some 300-500 tonnes of gold.
"If we fail to mobilize this source of gold to serve socio-economic development, the country could be unable to grow strongly.”
“The gold market management must guarantee the benefits of gold depositors as well as ensure that the mobilized capital source be used for socio-economic development, especially in current hard times," said Binh.
With many different tools, such as gold trading on international markets, the SBV will insure the risks of fluctuations in world gold prices, thus ensuring the values of gold deposited in banks.
In addition, SBV can also use the gold to convert into foreign currency to meet the needs of socioeconomic development.
Gold price edged up, 50.625 kg gold sold
Saigon Jewelry Co (SJC), Vietnam biggest gold trader, and Phu Nhuan Jewelry Co (PNJ) on Wednesday sold 1,350 taels of gold (50.625 kg) on occasion of the God of Wealth’s day.
The amount of gold sold on Wednesday, around 1,000 taels, was lower than the previous day, said Nguyen Cong Tuong, deputy head of SJC sales department.
The majority of the customers choose to buy small-sized gold bars ranging from 1/10 tael to 1/2 tael, Tuong said.
PNJ sold about 3,500 small gold pieces, or about 350 taels gold, said Nguyen Thi Cuc, deputy general director of PNJ.
Gold price yesterday inched up VND70,000 a tael day on day to VND45.1 million-45.4 million a tael.
Some private gold shops priced the 1/10 tael gold bars around VND100,000-150,000 higher than that of SJC, adding VND30,000 for packaging.
World price was around VND1 million cheaper than domestic price following the official forex rate.
On the world market, closing gold futures for April delivery in New York increased by $6 an ounce to $1,740.4 an ounce. Gold futures rose 11 percent In January.
Spot gold recorded by Kitco.com rose by nearly $9 an ounce compared with the previous session to $1,739.1 an ounce.
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