Thursday, November 29th 04:41 PM IST

Vietnam extends Gold deadline for banks to June next year

# Vietnam gold  # SBV  # SJC  # gold monopoly  

State Bank of Vietnam (SBV), country's central bank however said it's prohibition on mobilising capital in gold by commercial banks took effect on November 25.

HANOI(BullionStreet): Vietnam extended the deadline for commercial banks to pay back gold to depositors to end of June next year.

State Bank of Vietnam (SBV), country's central bank however said it's prohibition on mobilising capital in gold by commercial banks took effect on November 25.

SBV hopes that the regulation will prevent gold speculation and persuade people to sell gold to banks rather than hoard it. It is hoped that customers will avoid retaining gold in banks if they have to pay to do so.

Now, rather than enjoying deposit interest rates like before, depositors must pay their bank a yearly amount.

Since the regulations came into force, most banks are applying a fee of 0.01-0.05 per cent of the preserved gold's value per year.

These fees have not been regulated by the SBV. Anlaysts said Vietnam's gold market has not suffered pressure from banks buying gold to ensure balanced statements.

Generally, gold prices decline during the Christmas and New Year holidays as gold exchanges in the world close their doors.

However, in countries like China, India and Vietnam, this is the wedding season and thus gold consumption increases.

Meanwhile, gold bullion bearing the national brand SJC saw another decrease Wednesday of its selling price to 47.22 million dong, and the buying price to 47.07 million dong.

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