Stabilizing the gold market has become a pressing issue for Vietnam with smugglers taking advantage of higher local prices to slip in the precious metal, leading to exchange rate distortions and weakness in the dong that’s hurting the economy.
Prime Minister Pham Minh Chinh and members of the National Financial and Monetary Policy Advisory Council are among top authorities who have been urging for solutions in recent months. The price gap of the metal locally over the international rate must be narrowed “to avoid adverse developments,” Chinh said last week as he ordered the central bank to step up measures to calm the market.