State-owned banks sell gold bars 1.2% below market rates to stabilize prices

Agribank, BIDV, VietinBank and Vietcombank bought gold from the State Bank of Vietnam (SBV) for VND78.98 million (US$3,106.39) per tael and sold it to the market at less than VND80 million.

The current market rate stands at VND81 million.

A representative from one of the banks told VnExpress that the central bank permits lenders to sell gold at prices no more than VND 1 million above the buying price.

The banks have unlimited volume to sell to retail consumers but are prohibited from sell to organizations and businesses.

Vietnam gold price has been dropping in over a week and is now 13% higher than the global rate, a smaller margin compared to 23% a week ago.

Truong Van Phuoc, former chairman of the National Financial Supervisory Commission, said that selling gold bars through state-owned lenders is an effective measure by the central bank to help narrow the gap between domestic and global rates.

Saigon Jewelry Company gold bar price has plummeted by 12% from its all-time high of VND92 million (US$3,619.91) seen on May 10 to VND81 million ($3,185.84) Monday.