Monday, May 5, 2014
Central bank may be granted sole authority to cast gold
The Government is considering granting the sole authority to cast gold to the State Bank of Vietnam (SBV), instead of the current four or five firms.
SBV may soon have the unique right to cast gold
Dr Le Xuan Nghia, Vice Chairman of the National Financial Supervisory Commission (NFSC) said the move is expected to ensure that gold made in the country will meet both domestic and international standards.
If so, SBV may be allowed to set up a wholly-owned company that will take over such a task as well as setting up agents nationwide who would ensure gold supply, according to Nghia.
Gold that is cast by the SVB’s firm must meet standards that would allow it to be traded on modern gold transaction floors, and be eligible for certificates of deposits, which could be traded as an asset, he noted.
Under the Government’s proposed decree on gold trading, individuals would still be allowed to trade in and store gold bars, he emphasised. On May 20, an SBV official said the institution may issue a regulation to request commercial banks to stop mobilising capital and lending in gold upon the Government’s demand.
Dr Le Xuan Nghia, Vice Chairman of the National Financial Supervisory Commission (NFSC) said the move is expected to ensure that gold made in the country will meet both domestic and international standards.
If so, SBV may be allowed to set up a wholly-owned company that will take over such a task as well as setting up agents nationwide who would ensure gold supply, according to Nghia.
Gold that is cast by the SVB’s firm must meet standards that would allow it to be traded on modern gold transaction floors, and be eligible for certificates of deposits, which could be traded as an asset, he noted.
Under the Government’s proposed decree on gold trading, individuals would still be allowed to trade in and store gold bars, he emphasised. On May 20, an SBV official said the institution may issue a regulation to request commercial banks to stop mobilising capital and lending in gold upon the Government’s demand.
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