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Mining industry

Vietnam's Central Bank Takes Steps to Stabilize Gold Market

Strategic Insights

— 1 min read

The State Bank of Vietnam's governor, Nguyen Van Binh, announced measures to control the gold market on August 23, stating that the bank would allow more bullion imports if necessary to stabilize the market and keep prices within a certain range. The domestic price of gold has been driven up by strong demand, with prices reaching VND46 million ($2,203) per tael on August 9. Binh estimated that Vietnamese individuals and firms are holding 300-500 tonnes of gold.

Key Takeaways:

  • The State Bank of Vietnam will allow more bullion imports if necessary to stabilize the gold market and keep prices within a range of VND400,000 ($19.21) per tael of domestic and global prices.
  • The domestic price of gold has been driven up by strong demand, with prices reaching VND46 million ($2,203) per tael on August 9.
  • The central bank has set an import quota of five tonnes, but only about three tonnes have been imported so far, leading to a price increase of 3.6%.
  • Vietnamese individuals and firms are estimated to be holding 300-500 tonnes of gold.
  • The domestic price of gold reaches just under VND50 million per tael, while the global price reaches $2,000 an ounce.
  • The central bank plans to adopt comprehensive policies to stabilize the gold market and increase national reserves in the long run.
  • The US dollar is worth VND20,820 at banks and VND21,750 on the high street.

Statistics:

  • The domestic price of gold is currently VND46-VND1.2 million higher than the global price.
  • The price of gold on Kitco is $1,903.70 per ounce on August 23.
  • One tael is equivalent to 1.2 ounces.
  • The State Bank of Vietnam has set an import quota of five tonnes for gold.
  • Only about three tonnes of gold have been imported so far to meet sudden strong demand.
  • The domestic price of gold has increased by 3.6% due to the import quota and strong demand.

Sources:

  • Asia Pulse, "Vietnam's central bank steps in to stabilise gold market", August 24
  • VNA, "Vietnam's central bank eases gold market tightness", August 9 (no date provided in original text, reported by VNA)

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