Central bank to tighten gold regulations

The State Bank of Viet Nam this week will issue regulations to control gold transactions in an attempt to lift current pressure on the foreign exchange market.

The new regulation is expected to be issued shortly.

The fluctuating price of gold is believed to be the cause of the overheated US dollar on the black market in recent weeks, due to price manipulation by domestic gold dealers who are trying to keep prices of the precious metal high.

Under the pending proposal, the State Bank is considering forbidding commercial banks from exchanging gold for cash; and narrowing gold mobilising and lending activities at banks.

A source from the central bank revealed that they had already consulted relevant institutions and agencies and received Prime Ministerial approval.

To be updated.

Vietnamnews

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