With the tradition of keeping gold as an asset, Viet Nam imports 50-100 tonnes of gold every year. — Photo Livemint.com

HA NOI (Biz Hub) — The State Bank of Viet Nam announced on Thursday that its intervention in the gold market has helped curb inflation and stabilise the economy.

According to the Forex Management Department, the central bank's gold auctions helped reduce speculative activity in the market, with around 60 tonnes of gold being auctioned since March.

The department said 18 credit institutions were able to close their gold positions with the first 30 tonnes auctioned by the bank. The remaining supply of gold (around 29 tonnes) was sold to the market by winning bidders, far below the range of 50-100 tonnes imported each year.

The measure has helped minimize gold imports and increase foreign reserves, said a department official. The department has also conducted regular inspections of the 2,500 licensed retail points in Viet Nam, to ensure prices are transparent and in compliance with regulations.

The inspections aim to enforce a two per cent equity rule for local banks, who are required to keep gold reserves at the set level. The SBV also said banks must keep a record of ID for clients who carry out gold transactions worth more than VND300 million (USD$14,285) under the Decision 20/2013/QD-TTg, to prevent money laundering.

The SBV has said it will continue to manage the gold market and raise public awareness of its policies.

On Thursday, the Saigon Jewellery Company (SJC) posted a rate of VND37.38-37.58 million ($1,781-1,790) on its website at 3pm, while the kitco.com trading floor listed the price at $1337.30 per ounce, or $1,611 per tael, leaving prices in Viet Nam $179 per tael higher than global rates. —VNS