Ms. Nguyen Thi Hong said that when the gold price is high, people tend to be net sellers but have no need to buy, so they do not need to use foreign exchange reserves to import gold.
The gold market has had strong upswing sessions, at times gold price in the country pass 70 million dong a tael, but then fell very little despite the deep drop in world prices. At the same time, the difference between domestic and international prices is too high, sometimes up to 20 million VND per tael.
This development, according to delegate Nguyen Phuong Thuy (Hanoi), is unusual. At the questioning session of Governor Nguyen Thi Hong on the afternoon of June 8, Ms. Thuy also pointed out the unreasonable point, when the price difference between SJC gold bars – the national brand of gold bars and other gold bars brands, is also very large. .
“This causes anxiety and insecurity for people, reduces confidence in the value of the Vietnamese dong, and increases inflation,” she said, and wanted to know the solution to the root cause of this abnormality. on the gold market.
Responding to questions, Governor Nguyen Thi Hong reiterated the complexity and unpredictability of the world gold market’s movements over the past time due to the impact of many factors, such as the USD index or political tensions between the two countries. Ukraine and Russia… There was a time when the price of gold rose to $2,000 an ounce, then fell back to around $1,700-1,800 per ounce.
In the country, there is a phenomenon that the price of gold of brands other than SJC, i.e. raw gold, differs by about 2 million dong per tael compared to the international one. But the price of SJC gold alone increased at a large rate, about 16-17 million per tael.
“The domestic gold price increased in the same trend as the world price, but the adjustment speed was faster, while the decrease was slower than the world price,” commented Ms. Hong.
Ms. Hong said that due to the anti-gold policy, since 2014, the State Bank has not imported gold to produce gold bars. This reduces the supply of gold. Besides, with the fluctuations of the world gold price, gold bar businesses themselves are also concerned about risks, so they often list very high prices.
For example, SJC, the gold brand that people love, is often listed at a high price. According to the gold price listed by businesses, the current difference between buying and selling is about 1-1.5 million dong per tael.
Gold prices are high, there is a big difference between domestic gold brands, but on the demand side, leaders of the State Bank commented, people also reduce their demand to buy gold bars.
“Summing up the data of gold trading organizations, we find that people do not have much need to buy gold bars when the data is net selling, which means that when the price is higher, people sell it to get VND” Ms. Hong explained.
With such developments in the gold market, the same decrease, but the demand did not increase, but even decreased, Ms. Hong informed, the State Bank has not imported to intervene in the gold market. “Importing will have to use foreign exchange reserves, but be ready to intervene in case of need,” she said.
Not satisfied, delegate Nguyen Phuong Thuy argued further. According to her, gold bars, like those of Bao Tin Minh Chau, are 15 million dong lower than SJC gold bars (at the price on June 8). In terms of cost as well as in the world, such a difference is too big.
Agreeing, Mr. Trinh Xuan An, a delegate from Dong Nai province, said that perhaps Vietnam is the only country that goes against the world, that when world prices fall, domestic prices increase.
“Is the monopoly of the national gold bar brand – SJC the cause of the high price of this gold bar today?”, Ms. Thuy asked and waited for a satisfactory answer from the Governor at the morning questioning session. tomorrow (June 9).
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