Wednesday, October 3rd 12:05 PM IST

Vietnam banks frantic buying lifts Gold

# Vietnam gold  # SBV  # SJC  # gold monopoly  

Analysts said commercial banks are boosting their gold purchase to prepare for the November 25 deadline repayment of gold deposits.

HANOI(BullionStreet): As the November 25 deadline of repayment on gold deposits approaches fast, commercial banks in Vietnam are boosting their gold purchases.

The frantic buying by banks have taken the domestic prices to climb and further extend difference between domestic and global prices.

As demand exceeded supply, local gold prices continued to rise yesterday to VND47.8 million per tael, roughly VND3 million higher than the world price according to the Vietcombank's rate which yesterday rose VND20 against the previous day to VND20,870 per dollar.

Analysts said commercial banks are boosting their gold purchase to prepare for the November 25 deadline repayment of gold deposits.

According to the State Bank of Viet Nam (SBV) regulations, commercial banks will have to halt mobilisation and lending in gold from that date.

Analysts have been calling the SBV to allow gold imports to stabilise the local market.

Meanwhile, gold deposits are estimated at 4.6 per cent of the banks' total deposits or VND122.5 trillion ($5.89 billion) at the end of June.

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