|
SBV to set up legal framework for gold trading floors
Deputy Governor of the State Bank of Vietnam Nguyen Van Binh said that the State Bank has requested relevant ministries and branches to join forces to set up the legal framework for gold trading floors.
As gold is a special commodity item, the management over gold trading activities must be undertaken by not only the State Bank of Vietnam, but other relevant ministries as well.
Regarding the breakdown of ACB gold trading floor recently, Binh said that gold trading floors must not be economic organizations and that in Vietnam, gold trading floors have not been licensed by any agencies.
However, as there has been no legal framework for gold trading floors, the State Bank of Vietnam cannot interfere the market. Binh said that investors should consider the provisions of the contracts before deciding to join gold trading floors in order to protect themselves in case of disputes.
Several days ago, ACB’s gold trading floor broke down, which made investors lose a lot of money. However, ACB, which is running the gold trading floor, has denied its responsibility for the breakdown, saying that it was because of the troubles of the computing network, which was outside the bank’s control. Prior to that, investors were asked to sign contracts, which said that bank will not take responsibility for the damages or troubles caused by equipments, not by ACB’s staffs.
The explanation has been facing strong opposition from investors, who said that they lost big money due to the breakdown. They said that the bank must not deny the responsibility, because the bank is running the gold trading floor, and it must be responsible for anything happening with the floor.
The Government has allowed the inter-ministerial taskforce, which includes the representatives from the State Bank of Vietnam, Ministry of Finance, and Ministry of Planning and Investment to consider the operation of ACB gold trading floor in order to set up suitable legal framework for gold trading floors in Vietnam.
Binh said that the preliminary survey showed that the gold trading floor is always very bustling. However, he said that investors are facing very big risks, especially when there is no legalized specific standard for gold trading floors.
In related news, the oil and gold prices keep escalating after they increased sharply late last week as speculators purchase big orders for fear that the dollar will become weaker.
Gold shops in Hanoi on June 30 quoted the sale price at VND18.98mil/tael for 24-K gold, an increase of VND90,000/tael over the last week closing price. Meanwhile, the last week closing price was VND18.89mil/tael, an increase of VND60,000/tael over the previous trading session.
In the international market, the gold price (spot delivery) reached $926.40/oz early this morning (Vietnam time), up by $4.4/oz over the previous trading session.
However, analysts have advised investors to take cautious when making transactions at this moment, as the price goes up and down sharply. The gold price may reach the record high in history, and then plunges by several hundreds thousands VND overnight.
VNN
|
