Decision No. 16/2013/QD-TTg dated March 4, 2013 of the Prime Minister on the State Bank of Vietnam’s purchase and sale of gold bars on the domestic market

THE PRIME MINISTER

Decision No. 16/2013/QD-TTg of March 4, 2013 on the State Bank of Vietnam’s purchase and sale of gold bars on the domestic market

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 16, 2010 Law on the State Bank of Vietnam;

Pursuant to the Government’s Decree No. 24/2012/ND-CP of April 3, 2012, on management of gold trading activities;

Pursuant to the Government’s Decree No. 86/1999/ND-CP of August 30, 1999, on management of state foreign exchange reserves;

At the proposal of the Governor of the State Bank of Vietnam;

The Prime Minister promulgates the Decision on the State Bank of Vietnam’s purchase and sale of gold bars on the domestic market.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

This Decision regulates the State Bank of Vietnam’s gold bar purchase and sale activities on the domestic market (below referred to as the State Bank) with credit institutions and businesses licensed to purchase and sell gold bars (below referred to as licensed credit institutions and businesses).

Article 2. Principles of the State Bank’s gold bar purchase and sale

1. Based on objectives of the monetary policy in each period, the State Bank may purchase or sell gold bars to intervene in and stabilize the domestic gold market and purchase gold bars to supplement to state foreign exchange reserves.

2. The State Bank shall carry out gold bar trading with licensed credit institutions and businesses according to its periodical gold bar purchase and sale plan.

3.  The State Bank’s determination of the prices of buying and selling gold bars with licensed credit institutions and businesses on the domestic market must comply with  the State Bank’s regulations in conformity with each form of gold bar purchase and sale as stipulated in Article 6 of this Decision.

Article 3. Rights and responsibilities of the State Bank

1. The Governor of the State Bank shall decide on plans to intervene in the gold market as stipulated in Article 5 of this Decision.

2. For purchase and sale of gold bars on the domestic market, the State Bank is entitled to open and use overseas accounts to purchase or sell gold or import gold to supplement state foreign exchange reserves or sell gold abroad.

3. The State Bank shall ensure safety for state foreign exchange reserves through complying with provisions on structure, standards and quotas of investment in state foreign exchange reserves when buying and selling gold bars.

Article 4. Accounting

1. The State Bank shall decide to apply exchange rates and gold prices to be converted into USD and Vietnam dong for accounting work and reflecting fluctuations in exchange rates and gold prices on domestic and global markets.

2. The State Bank shall account expenses relating to the purchase, sale, import and export of gold and production of gold bars into its professional expenses.

3. Losses arising from intervention into the gold market must be handled according to the State Bank’s financial regulations.

Chapter II

THE STATE BANK’S GOLD BAR PURCHASE AND SALE TRANSACTIONS

Article 5. Plan on gold bar purchase and sale

1. The State Bank’s gold bar purchase or sale plan to intervene in the gold market in each period includes the following details:

1. Time of purchase and sale.

2. Volume of gold bars to be purchased and sold.

3. Forms of purchase and sale.

4. Subjects involved in purchase and sale.

5. Specific buying and selling prices conforming with each form of purchase and sale as stipulated in Article 6 of this Decision.

6. Other relevant contents.

Article 6. Forms of gold bar purchase and sale

The State Bank shall choose and decide specifically the gold bar purchase and sale in each transaction under one of the following forms:

1. Direct gold bar purchase and sale;

2. Gold bar purchase and sale through bidding.

Article 7. Process of gold bar purchase and sale

The State Bank shall detail dossiers, procedures, the process of gold bar purchase and sale with licensed credit institutions and businesses under the forms of gold bar purchase and sale stipulated in Article 6 of this Decision.

Chapter III

IMPLEMENTATION PROVISIONS

Article 8. Effect

This Decision takes effect on March 5, 2013

Article 9. Implementation responsibilities

1. The State Bank shall detail and organize gold bar purchase and sale in accordance with this Decision.

2. Ministers, heads of miniterial-level and government-attached agencies, chairpersons of the People’s Committees of provinces and centrally run cities and related organizations and individuals shall implement this Decision.-

Prime Minister
NGUYEN TAN DUNG