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Saturday, May 18, 2024

Central bank to resume gold auctions after 11-year hiatus

The Saigon Times

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HCMC – The State Bank of Vietnam (SBV), the central bank, is finalizing preparations to conduct gold auctions, marking its return to the practice for the first time since 2013, according to a statement issued by the SBV on April 15.

Interested participants will receive a notification one day in advance. Following the announcement of the floor price, banks and gold trading enterprises will submit bidding forms within a 30-minute window to decide on quantity and price.

The results of the auctions will be promptly disclosed by the central bank within an hour from the bid submission deadline.

To participate, businesses must deposit funds by 5 p.m. on the day they receive the bidding notification.

Out of the 26 commercial banks and gold trading firms authorized to trade gold bars with the SBV, only about 15 are currently qualified to participate in the bidding process. SJC gold bars are the type of gold offered in these auctions.

The SBV held its first gold bar auction in 2013. Through 76 sessions, the central bank sold 1,819,000 taels of gold out of 1,932,000 offered in the year. At that time, a tael of SJC gold (37.5 grams or 1.2 troy ounces) was VND4.2 million higher than the global price.

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