Gold import quotas further eased

HA NOI — Some of the country's major gold dealers have received new licences from the State Bank of Viet Nam to import additional quantities of gold through the end of this year in a move to stabilise domestic gold prices.

Doji Gold and Gems Group, Agribank Jewellery Co (AJC) and several commercial banks have confirmed the information but refused to disclose the quotas, saying the total quota was bigger than previous times.

This is the fourth gold quota increase this year but the first time it was approved in a relatively stable gold market.

Doji's General Director Do Minh Phu praised the move by the central bank as it would help narrow the distance between domestic and global gold prices.

"The gold import allowance at this point in time is appropriate because dealers will have enough time to schedule their import decisions at an optimal moment. That said, it is not easy to determine the correct time to import gold at good prices," Phu said.

He also said that demand for material gold regularly falls in the global market after December when holidays are over, meaning the gold price may decline. However, Phu warned that the current European debt crisis and political tension between North and South Korea might change the regular rule.

AJC's General Director Nguyen Thanh Truc said the domestic gold price would not be significantly lowered because of the exchange rate.

According to the central bank, Viet Nam has imported 339.86 tonnes of gold since 1998 and exported 268.86 tonnes.

Gold sellers in Ha Noi and HCM City, such as Sai Gon Jewellery Co, Sacombank Jewellery Co, Bao Tin Minh Chau, Agribank Jewellery Co and Phu Nhuaân Jewellery Co, yesterday quoted buy/sell prices of VND35.75-35.86 million (US$1,678-1,683) per tael of gold, down VND150,000 per tael against Wednesday.

One tael equals 37.5g or 1.2 troy ounces.

The domestic price yesterday was just VND600,000 per tael higher than the global rate, down from VND800,000 per tael previously.

The black market rate for the US dollar rose to VND21,300, up VND40 against Wednesday, while commercial banks continued to quote the US dollar at VND19,500.

Global spot gold eased $1.56 to $1,372.15 per ounce - well below a lifetime high of around $1,424 which struck in early November. The price hit an intraday low of around $1,367 per ounce.

Source: vnagency.com.vn