ID :
93942
Wed, 12/09/2009 - 11:00
Auther :
Shortlink :
http://m.oananews.org//node/93942
The shortlink copeid
PM orders state bank of Vietnam to enhance administration of gold sector
Hanoi (VNA) – The Prime Minister has ordered the State Bank of Vietnam to enhance administration of the gold sector, particularly gold-trading centres.
In fact, the public was still worried about the central bank’s prior proposed
to close domestic gold bourses so to increase the security deposit rate to 100
percent of total net assets.
The proposal was designed to protect individual investors.
The central bank’s governor, Nguyen Van Giau, told the Vietnam News on Dec. 7
that the bank would follow Government suggestions.
‘Let’s do what the Prime Minister directs,” he said, refusing to comment on
the bank’s earlier proposals.
About 20 gold-trading bourses, which are almost all owned by commercial banks,
securities companies and gold-trading firms, are not being governed by legal
regulations.
“Before granting licences for us to operate, they should have thought about
administration rather than a sudden close of bourses. We have invested much a lot
to set up offices and train staff,” a chief manager of a gold trading bourses in
Hanoi said.
Before the proposal, the central bank formed 11 draft regulations governing gold
trading bourses. Among those was a regulation stating that only banks or companies
cooperating with banks would be allowed to open gold-trading bourses. It also
stated that security deposit rates would be set at 10-15 percent of the total net
asset value. However, no draft has been issued.
Market watchers agreed that regulations were necessary but that closing gold
bourses would not end risky trading.
What happened on November 11when the domestic gold price reached a record high of
29.3 million VND per tael and numerous investors suffered heavy losses, should be
a reminder about the risks involved with the precious metal market.
A series of proposals from the public have been made to deal with gold-trading
problems, such as the administration of gold trading bourses by securities
exchanges, or the central bank’s management of on-line gold trading, while the
Ministry of Industry and Trade would manage physical gold trading, It has also
been suggested that the Government set up an independent gold-trading management
centre.
Some bank leaders have suggested that the central bank draw up strict criteria
for companies and banks to set up gold trading bourses to select the best
candidates. They also suggested that the security deposit rate be adjusted as done
with regulated securities lending.-Enditem
In fact, the public was still worried about the central bank’s prior proposed
to close domestic gold bourses so to increase the security deposit rate to 100
percent of total net assets.
The proposal was designed to protect individual investors.
The central bank’s governor, Nguyen Van Giau, told the Vietnam News on Dec. 7
that the bank would follow Government suggestions.
‘Let’s do what the Prime Minister directs,” he said, refusing to comment on
the bank’s earlier proposals.
About 20 gold-trading bourses, which are almost all owned by commercial banks,
securities companies and gold-trading firms, are not being governed by legal
regulations.
“Before granting licences for us to operate, they should have thought about
administration rather than a sudden close of bourses. We have invested much a lot
to set up offices and train staff,” a chief manager of a gold trading bourses in
Hanoi said.
Before the proposal, the central bank formed 11 draft regulations governing gold
trading bourses. Among those was a regulation stating that only banks or companies
cooperating with banks would be allowed to open gold-trading bourses. It also
stated that security deposit rates would be set at 10-15 percent of the total net
asset value. However, no draft has been issued.
Market watchers agreed that regulations were necessary but that closing gold
bourses would not end risky trading.
What happened on November 11when the domestic gold price reached a record high of
29.3 million VND per tael and numerous investors suffered heavy losses, should be
a reminder about the risks involved with the precious metal market.
A series of proposals from the public have been made to deal with gold-trading
problems, such as the administration of gold trading bourses by securities
exchanges, or the central bank’s management of on-line gold trading, while the
Ministry of Industry and Trade would manage physical gold trading, It has also
been suggested that the Government set up an independent gold-trading management
centre.
Some bank leaders have suggested that the central bank draw up strict criteria
for companies and banks to set up gold trading bourses to select the best
candidates. They also suggested that the security deposit rate be adjusted as done
with regulated securities lending.-Enditem
