Central bank to stop auctioning gold

By Minh Son   May 27, 2024 | 11:29 pm PT
Central bank to stop auctioning gold
A person holds gold bars at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
The State Bank of Vietnam will no longer auction gold to increase bullion supply but instead will resort to other measures to stabilize the market.

It made this announcement late Monday without revealing what it proposes to do.

Vietnam bullion prices reached VND92.4 million ($3,630.29) per tael earlier this month before declining, 23% higher than the global rate. Vietnamese prices have historically been higher than international prices.

The central bank has held six auctions this year and sold 48,000 taels of 37.5 grams or 1.2 ounces each to designated businesses to increase supply and cool down prices.

Some lawmakers have said however that the auctions have not succeeded in stabilizing the market.

Tran Van Lam, a member of the National Assembly’s Finance and Budget Committee, said the central bank had high reserve prices at the auctions and when buyers sell them at a profit, market prices could not fall.

Some analysts have said that eventually the central bank needs to give up its monopoly on gold manufacturing.

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