“There are opinions that we must increase gold imports or entrust some importers… that is dangerous. Because, if this continues, it will create conditions for the supply of physical gold, while the world trend is to rely on account gold in addition to physical gold.
If gold is imported, the State must spend foreign currency; The more physical gold supply increases, the more “golden” it becomes. Therefore, solutions must be synchronized at the same time. Amending the decree cannot change more than 20%, so Decree 24 must be replaced,” Mr. Long proposed.
Must convert from physical gold to derivative gold
According to Associate Professor, Dr. Ngo Tri Long, to stabilize the gold market, it is necessary to operate according to market principles. First of all, it is necessary to thoroughly grasp the principles of gold market management in a market economy. To limit goldization and dollarization of the economy, it is necessary to develop a healthy market and limit gold speculation.
“The State Bank only performs management and policy making functions, only regulates foreign exchange reserves in gold according to the Foreign Exchange Ordinance, State Bank Law, and Credit Institutions Law without participating in production and business. or regulate the market by administrative measures, without directly participating in the business of enterprises.
Enterprises that meet production and business conditions must be allowed to operate on their own according to market mechanisms. The state only manages quality (golden age), weight, and brands as registered businesses, allowing many brands to exist instead of a monopoly. Once business conditions have been stipulated, you cannot “lay out” procedures for applying for and granting sublicenses,” Mr. Long said.
Along with that, this expert emphasized that the Vietnamese gold market must be connected to the world gold market and must eliminate the current price gap factor with market solutions. Supply must be linked to demand, moving towards liberalization of import and export, the State can only regulate by policy.
“We must lead the transition from the physical gold market to a gold market with many derivative products, giving businesses and investors more risk insurance tools and integration, and access to new products. popular finance in the international market. Amending Decree 24 must more comprehensively address financial products and services related to gold, not simply managing gold bars and gold jewelry,” Associate Professor, Dr. Ngo Tri Long noted.
Besides, he emphasized that preventing “goldization” cannot be achieved through administrative solutions but must shift from trading gold bars to trading other gold products such as gold certificates, derivatives, etc. .. on a centralized trading hub.
Therefore, according to Mr. Long, it is necessary to soon allow the Commodity Exchange to trade gold futures through standard forward contracts like other advanced countries. Participating members must meet strict standards and be allowed to import and export gold. This will not require the expense of importing physical gold to sell to people.
