The State Bank of Vietnam (SBV) announced on September 26 that its intervention in the gold market has helped curb inflation and stabilise the economy.
According to the Forex Management Department, the central bank's gold auctions helped reduce speculative activity in the market, with around 60 tonnes of gold being auctioned since March.
The department said 18 credit institutions were able to close their gold positions with the first 30 tonnes auctioned by the bank.
The remaining supply of gold (around 29 tonnes) was sold to the market by winning bidders, far below the range of 50-100 tonnes imported each year.
The measure has helped minimise gold imports and increase foreign reserves, said a department official. The department has also conducted regular inspections of the 2,500 licensed retail points in the country, to ensure prices are transparent and in compliance with regulations.
The inspections aim to enforce a 2 percent equity rule for local banks, who are required to keep gold reserves at the set level.
The SBV also said banks must keep a record of ID for clients who carry out gold transactions worth more than 300 million VND (14,285 USD) under the Government Decision 20/2013/QD-TTg, to prevent money laundering.
The SBV has said it will continue to manage the gold market and raise public awareness of its policies.