SBV buys $10b foreign currency since early this year

In the XIII term National Assembly session on the socio-economic situation held in the morning on October 31, the State Bank of Vietnam (SBV)’s governor, Nguyen Van Binh, gave a speech related to anti-goldenization and dollarization in the economy.

According to the governor, during the last time, the central bank has had several measures against the goldenization and dollarization.

Particularly, the central bank has bought $10 billion since early this year together with 60 tonnes of gold from people, equivalent to $3 billion. Thus, the central bank has total $13 billion to be converted into the dong to support the economy.

Thanks to this source of money, we have reduced the interest rates, prevented goldenization and dollarization and ensured economic stability over time, the governor said.

Regarding the gold bullion monopoly issue, according to the Governor, since May 25, gold bullion processors had to terminate operation, only the central bank made gold bullion swagging monopoly and used SJC as the national gold brand because this type of gold accounts for 93 percent of the market share of gold bar nationwide.

According to the Decree 24, the types of previously licensed gold bars shall continue to be in circulation normally and they are not required to convert into SJC gold.

According to the Governor, generally, the gold bullion management problem is suit the government’s programme to prevent goldenization situation. For recently arisen problems, the central bank will coordinate with agencies to resolve as soon as possible.

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