Quyết định 16/2013/QD-TTg

DECISION

ON PURCHASE AND SALE OF GOLD BAR ON DOMESTIC MARKET OF THE STATE BANK OF VIETNAM

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

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

Pursuant to the Government’s Decree No. 24/2012/ND-CP of April 03, 2012, on management of gold business 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 Decision on purchase and sale of gold bar on the domestic market of the State bank of Vietnam,

Chapter 1.

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

This Decision regulates activities of gold bar purchase and sale on domestic market of the State bank of Vietnam (hereinafter abbreviated to the State bank) with credit institutions, enterprises allowed to do purchase and sale business of gold bar (hereinafter abbreviated to the allowed credit institutions and enterprises).

Article 2. Principles of gold bar purchase and sale of the State bank

1. Based on objective of monetary policy in each period, the State bank shall purchase or sell gold bar in order to interfere, stabilize the domestic gold market and purchase gold bar in order to supplement to the state foreign exchange reserves.

2. The State bank shall implement purchase and sale of gold bar with the allowed credit institutions and enterprises according to plan on purchase and sale of gold bar in each period.

3. Defining of purchase prices, sale prices of gold bar on domestic market of the State bank with the allowed credit institutions and enterprises complies with regulations of the State bank in conformity with each form of gold bar purchase and sale specified in Article 6 of this Decision.

Article 3. Rights and duties of the State bank

1. The Governor of the State bank shall decide plan to interfere in gold market as prescribed in Article 5 of this Decision.

2. When implement the gold bar purchase and sale on domestic market, the State bank is entitled to open account, purchase gold, sell gold on overseas account or purchase gold in other countries in order to import gold supplementing for state foreign exchange reserves or sell gold abroad.

3. The State bank is responsible for assurance for safety of state foreign exchange reserves through compliance of provisions on structure, standards, investment limit of state foreign exchange reserves when implement purchase and sale of gold bar.

Article 4. Acounting

1. The State bank shall decide application of exchange rates and gold prices in order to convert to USA and Vietnam dong in service for accounting and reflecting changes on exchange rates and gold prices on international and domestic market.

2. The State bank shall account expenses relating to activities of purchase, sale, import and export of gold and production of gold bar into professional expenses of the State bank.

3. Losses arising related to activities of interfering gold market are handled according to the financial regime of the State bank.

Chapter 2.

TRANSACTIONS IN GOLD BAR PURCHASE AND SALE OF THE STATE BANK

Article 5. Plan on gold bar purchase and sale

Plan on gold bar purchase or gold bar sale of the State bank in order to interfere in gold market in each period includes the following contents:

1. Time of purchase, sale;

2. Volume of gold bar purchased or sold;

3. Form of purchase, sale;

4. Subjects implementing purchase, sale;

5. Specific purchase and sale price levels in conformity with each form of purchase and sale as prescribed in Article 6 of this Decision;

6. Other relevant content.

Article 6. Form of gold bar purchase and sale

The State bank shall select and decide specifically on the gold bar purchase and sale in each transaction under one of 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 specify dossiers of, procedures for, process of gold bar purchase and sale with the allowed credit institutions and enterprises under forms of gold bar purchase and sale specified in Article 6 of this Decision.

Chapter 3.

IMPLEMENTATION PROVISIONS

Article 8. Effect

This Decision takes effect on March 05, 2013.

Article 9. Responsibility for execution

1. The State bank shall detail and organize implementation of gold bar purchase and sale in accordance with provisions in this Decision.

2. Minsters, Heads of ministerial-level agencies, Heads of Governmental agencies, the chairpersons of the People’s Committee of provinces and centrally-run cities and relevant organizations and individuals shall implement this Decision.