PM Pham Minh Chinh has ordered the State Bank of Vietnam to carry out measures to stabilise the gold market. (Illustrative image/Photo: dangcongsan.vn)

The Government has repeatedly requested the central bank to keep a close watch on the global and domestic gold prices so as to control the market as its recent complicated developments have had a negative impact on the monetary market and market sentiment.

Relevant sides are ordered to carry out comprehensive evaluation and meticulous analysis and take effective and timely measures which are in line with current regulations and market principles to handle the substantial gap between domestic and global gold bar prices. The move aims at preventing the "goldernisation" in the domestic economy as well as negative influence on the foreign exchange market and national financial and monetary safety and security.

The bank must work to complete legal framework, mechanisms, and policies related to gold market management and business activities, while recommending competent authorities to consider amendment and supplement to existing regulations to improve the efficiency of the state management tools. It is also asked to report the progress to the Prime Minister before March 22.

Furthermore, it is ordered to conduct inspections at gold trading institutions, timely detect loopholes, and have suitable settlement.

Communications work must be given due attention so as to provide the public with official information as well as policies related to the management of the financial, monetary, foreign exchange and gold markets, helping stabilise the public sentiment.

The Ministry of Public Security is ordered to work closely with the SBV and competent agencies to mete out strict punishment to any violations, especially gold smuggling, speculation and manipulation that cause instability to the market.