Vietnam Central Bank to Decide Bullion Conversion Plan in A Few Days

The State Bank of Vietnam (SBV) will decide a bullion conversion plan and implementation approach in a few days, the Saigon Times reported, citing its private source.

SJC have imported one more gold testing machine; a move to speed up the gold testing process, which is done rather slowly in the past time, said Nguyen Hoang Minh, Deputy Director of the municipal central bank in Ho Chi Minh City.

SJC currently has only four gold testing machines and once the new machine is delivered, the SJC can test 2,000 taels a day. Compared to the total quantity of nearly 400,000 taels that need testing, it will take more than 6 months to finish the job.

Earlier, the Ho Chi Minh City People’s Committee proposed the central bank to allow temporary bullion export and solid gold reimport as suggested by domestic gold trading units. The approach will help to speed up the quality assessment of non-SJC gold, ensure sufficient gold supply to the market, contribute to cutting the local gold premium and reduce damage to credit institutions and the local people, the HCMC authority said.

Temporary bullion export and solid gold reimport involve activities in which firms export their bullion and reimport the converted solid gold. As such, the quality of gold is guaranteed and the gold will then be brought to the SJC for re-swaging without the need to verify the quality.

However, SBV Deputy Governor Le Minh Hung said that the activity is not easy to implement due to regulatory restrain specifying that the SBV is the only gold exporter and importer in the market.

The central bank is considering various options, Hung said, adding that the monetary authority favors allowing firms to turn their bullion into solid gold on their own under the quality control of the SJC. The SJC can then re-swage gold into bullion, Hung said.

Tagged as: , , , , ,