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| SJC gold bullions__Photo: VNA |
The State Bank of Vietnam plans to raise the end-of-day gold position limit for credit institutions authorized to produce, export and import gold from 2 percent to 5 percent of their charter capital, a move expected to give banks more flexibility in supplying gold to the market.
The proposal was raised in a draft circular to replace Circular 38 of 2012 on gold positions of credit institutions.
Accordingly, banks permitted to produce, import and export gold bullions and raw gold will be allowed to hold end-of-day gold positions of up to 5 percent of their charter capital.
The increase in gold positions is aimed at helping narrow the gap between domestic and global gold prices.
Currently, eight commercial banks are eligible for gold production, import and export under established regulations, including Vietcombank, VietinBank, BIDV, Agribank, Techcombank, MB Bank, VPBank and ACB.
If all eight banks are granted licenses to produce, import and export gold, their combined 5 percent of capital threshold is estimated to amount to USD 2.56 billion, equivalent to 20 tons of gold, based on an exchange rate of VND 26,135 per USD and a world gold price of USD 3,982 per ounce as of September 30, 2025, according to the central bank.
For credit institutions permitted only to trade gold bars without production, import and export, the gold position limit would remain at 2 percent of their charter capital.
Credit institutions would not be allowed to hold negative gold positions.
The central bank said any decision to allow banks to produce, import or export gold would depend on specific quotas granted by the SBV.
The SBV added that even with a higher limit of 5 percent, the scale of gold positions would remain moderate compared with banks’ financial capacity and would not pose risks to the financial system.- (VNA/VLLF)
