Saigon Jewellery Company (SJC) is seeking approval from the State Bank of Vietnam (SBV) to reprocess deformed gold bars for the benefits of local consumers, said an executive of the company.
According to an SJC executive, with the new decree on gold trading control starting from May 25, all gold bar processing activities of SJC need to be approved by SBV. And SJC has stopped repurchasing deformed gold bars from residents until it gets permission from the central bank to reprocess deformed gold bars into normal ones, he said.
SJC believes that the volume of deformed gold bars accounts for a considerable portion of a combined 800 tonnes equivalent to 20 million taels in circulation in the local market.
SJC has proposed the central bank to allow deformed gold bar reprocessing, saying the activity would neither increase gold supplies in the market nor leave bad effects on the economy.
Many gold shops are trying to repurchase a huge volume of deformed gold bars from citizens at prices as low as gold input materials. Therefore, gold bar reprocessing when in place will help protect the benefits of such consumers, said deputy head Nguyen Cong Tuong of the SJC sales department.
According to a well-informed source, there is a high possibility that within the week the central bank would approve the proposal of SJC.