Conversion time extended for gold traders

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Hanoi Times English - 30 month(s) ago 10 readings

The Hanoitimes - The State Bank of Vietnam (SBV) has completed a draft circular permitting gold bar traders to switch business for another six months after Decree 24/2012/ND-CP o­n gold bar trading restrictions takes effect o­n May 25.

The Hanoitimes - The State Bank of Vietnam (SBV) has completed a draft circular permitting gold bar traders to switch business for another six months after Decree 24/2012/ND-CP o­n gold bar trading restrictions takes effect o­n May 25.

So now gold firms have more than seven months to go after Decree 24 came out early this month. In the meantime, they have to finalize the procedures for obtaining gold bar trading certificates or completely switch to gold jewelry production and trading.

Regarding the concern that prices of gold bars of other brands than SJC could be suppressed, Nguyen Quang Huy, head of the SBV’s Foreign Exchange Department, said Decree 24 does not discriminate SJC gold bars from the others. Gold bars legally owned by organizations and individuals are recognized and protected by law and allowed to be traded at the banks and enterprises licensed by the SBV, said Huy o­n the central bank’s website.

According to Nguyen Thanh Truc, vice chairman of the Vietnam Gold Traders Association, when Decree 24 comes into force, the local market will be left with a mere 10-20 gold bar traders, along with some credit institutions. This will not o­nly leave a great impact o­n the current 10,000 gold enterprises, but the nation’s gold trading network will also be affected, as consumers are used to trading gold at small gold shops.

However, Truc admitted the strict regulations of Decree 24 will help stabilize the local gold market.

The decree is issued in a bid to remedy the shortcomings in gold bar management, create a legal foundation to reorganize the gold market and tackle speculation and illegal trading, said SBV o­n its website.

In addition, Decree 24 regulates activities other than gold bar trading to be carried out o­nly with permission of the Prime Minister and the central bank due to the many potential risks of gold trading o­n accounts and gold derivate activities. The decree also creates a legal foundation to handle violators.



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