Headquarters of the State Bank of Vietnam (SBV). The SBV’s Department for Management of State Foreign Exchange Reserves will take responsibilities of developing SBV’s gold bar trading plans. — Photo sbv.gov.vn

The State Bank of Vietnam (SBV) has issued new regulations to guide gold bar trading on the domestic market.

Circular 12/2023/TT-NHNN, which amends Circular 06/2013/TT-NHNN, will take effect from 27 November this year.

Under the new circular, the SBV’s Department for Management of State Foreign Exchange Reserves (DMSFER) must make a written notification to the SBV's Foreign Exchange Management Department, the SBV’s Finance and Accounting Department, the SBV’s Central Banking Department, and the SBV’s Issue and Vault Department about the results of gold bar trading transactions with each credit institution and enterprise after signing to confirm the transactions.

The SBV also amends and supplements regulations on the responsibilities of the DMSFER in gold bar trading. Specifically, the DMSFER must act as the focal agency and coordinate with the Foreign Exchange Management Department to submit to the SBV’s Governor proposals on temporary suspension and cancellation of gold bar trading transactions with credit institutions and enterprises according to regulations. The department also needs to notify credit institutions and enterprises of the SBV's decision on the suspension and cancellation.

In addition, the DMSFER will also act as the focal agency and coordinate with the Central Banking Department to perform payments for trading gold bars. The department will have to make a written notification to credit institutions and enterprises about non-refund of deposits, besides notifying and updating the SBV’s Banking Supervision Agency and the Foreign Exchange Management Department on the list of credit institutions and enterprises that have gold bar trading relationships with the SBV.

At the same time, the DMSFER needs to coordinate with the Foreign Exchange Management Department and the Monetary Policy Department to develop the SBV’s gold bar trading plans.

Furthermore, the DMSFER must also notify the Central Banking Department about credit institutions and enterprises that violate prescribed obligations as a basis for processing deposits.

According to the current legal regulations, if licensed credit institutions or enterprises have a need to purchase gold bars from the SBV, they can submit a registration dossier to the SBV to establish trading relations. Within five working days after receiving the dossier, the SBV will inform them of their decision to establish trading relations. Gold bars will be traded either by tender or direct purchase.

Credit institutions and enterprises are allowed to appoint only one representative to participate in each gold trading with the SBV. — VNS