The SBV recently released a summary report on the implementation of Government Decree No. 24 on gold trading management.

According to the SBV, under the 2012 and 2023 Price Laws, gold bullion is not categorized as a commodity subject to price stabilization or price-setting by the State. The buying and selling prices of SJC gold bullion are determined independently by credit institutions and gold trading enterprises based on market supply and demand.

Price listings are carried out in accordance with relevant legal provisions, and currently, there is no regulation requiring enterprises to list SJC gold at any fixed price.

In conditions of limited supply, businesses often list high buy and sell prices. Consumers have the freedom to choose whether to hold SJC gold or other brands, bearing the risks and benefits of price fluctuations themselves.

Notably, while Decree 24 mandates the SBV to stabilize the gold market, it does not authorize the central bank to intervene in enterprise-set SJC bullion prices.

Additionally, Clause 3, Article 16 of Decree 24 outlines how the SBV may intervene in the gold market through the following methods:

Exporting and importing raw gold, as stipulated in Clause 1, Article 14 of the same decree.

Organizing and managing gold bullion production by setting production limits, timing, and execution methods as appropriate for each period. The production costs are accounted for in the SBV’s operational expenses.

Buying and selling gold bullion in the domestic market and organizing gold mobilization programs as regulated by the Prime Minister.

Hanh Nguyen