Gov't financial watchdog proposes official gold exchange

TN News

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Vietnam's National Financial Supervisory Commission said it has asked the government to open an official gold exchange in 2011 to restore order to trading in the precious metal.

A concrete plan for the establishment of the national exchange will be discussed by government officials next week, said Le Xuan Nghia, vice chairman of the commission.

He said the exchange will operate like a stock exchange in both Ho Chi Minh City and Hanoi. Gold will be traded in the form of certificates.

The launch of the exchange will allow investors to invest in gold officially, and at the same time, help authorities manage the market, Nghia said.

Vietnam had closed all 20 gold exchanges in the country by the end of March. The central bank said the closure was necessary to eliminate risks posed to the national financial system.

After the shutdown, however, some illegal trading floors for gold popped up as many investors still wanted to trade gold using accounts despite the huge risks involved.

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