Vietnam's State Bank Lowers Gold Bar Sale Price to 77.98 Million Dong

On June 4, 2024, the State Bank of Vietnam (SBV) Governor approved a direct gold bar sale price of 77.98 million dong per unit. This represents a decrease of 1 million dong from the previous day, as part of the central bank's ongoing efforts to stabilize the domestic gold market.

The SBV began selling gold directly to four state-owned commercial banks on June 3, 2024. These banks—Agribank, Vietcombank, BIDV, and VietinBank—along with the Saigon Jewelry Company (SJC), are tasked with selling the gold bars to the public. This initiative aims to narrow the gap between domestic and global gold prices.

A senior SBV official recently mentioned that the domestic gold price might be influenced by illicit factors, although an independent analyst expressed skepticism about this theory. The SBV's move to control the gold market is part of a broader strategy to ensure market stability and reduce price disparities.

The State Bank of Vietnam's move to control the gold market has significant implications for the country's economy and financial stability. This effort to narrow the gap between domestic and global gold prices could lead to increased market stability and reduced price disparities, benefiting consumers and investors in the long run.

On June 3, the four state-owned banks and SJC began offering gold bars to individual consumers at 79.98 million dong per tael. However, SJC adjusted its trading price to 77.98 - 79.98 million dong per tael later that afternoon, reflecting a decrease of over 2 million dong from the morning prices.

Despite the lower prices, many people lined up to buy gold at the banks, although only a small amount of gold bars were sold. Bank staff asked buyers to return on June 4 to continue their purchases.

The SBV's policy aims to narrow the difference between domestic and global gold prices. The gap had previously been as wide as 18 million dong but has now decreased to 9.5 million dong. This reduction is part of the central bank's broader efforts to stabilize the market.

The SBV will continue to monitor the gold market closely and adjust its policies as needed to maintain market stability. The central bank's efforts reflect a commitment to ensuring that the domestic gold market operates smoothly and fairly.

Key Takeaways

• SBV sets direct gold bar sale price at 77.98 million dong per unit, down 1 million dong from previous day.
• Four state-owned banks and SJC sell gold bars to public to narrow domestic-global price gap.
• Domestic gold price gap with global price decreases from 18 million to 9.5 million dong.
• SBV aims to stabilize domestic gold market and reduce price disparities.
• Central bank will continue to monitor and adjust policies to maintain market stability.