Stronger oversight of forex, gold trading
The State Bank of Vietnam’s HCMC branch has urged efforts to curb unauthorized foreign exchange and gold trading activities.
In response to a spike in foreign exchange demand towards the end of the lunar year, the SBV branch emphasized the need for enhanced oversight of foreign currency exchange and gold sales. The heightened demand is attributed to increased international visitors, tourists, and citizens seeking currency change services.
Earlier, the SBV, the nation’s central bank, warned of regulatory violations involving gold trading activities and currency exchanges, saying that some organizations and individuals are engaging in illegal foreign exchange transactions. This not only breaches foreign exchange regulations but also impacts exchange rates and market stability.
In response to these concerns, it mandated that businesses and individuals dealing in gold report transactions worth VND400 million or above each. This requirement, issued on December 28, aims to identify and assess the risk of money laundering amid increased buying and selling activities, driven by significant fluctuations in gold prices.
The central bank also urged coordination among relevant authorities, including law enforcement agencies and local administrations, with a focus on inspections and monitoring of those involved in gold trading.
Previously, the local gold market became volatile on December 26, making buyers stressful, as SJC gold dropped by a staggering VND2 million per tael early in the afternoon. At the beginning of the day, Vietnam’s gold prices had surged to an all-time high of over VND80 million per tael, up some VND2 million from the previous day. A tael equals 37.5 grams or 1.2 troy ounces.
Analysts attributed the morning surge in SJC gold prices to 70% psychological factors and 30% defensive measures.