How do handle the economic-monetary relationship in Vietnam

Abstract

1. Role of the gold

People have, for thousands of years, confirmed the superiority of gold and silver. Gold and silver are regarded as reliable assets for their values, as a result gold to be used as the basis is the best to ensure currency value, with which many countries have pursued, and the currency stability with gold to serve as guaranteed asset, depends on the quantity of gold they own.

The fact gold price floatation in domestic and world market recently has led to opinions that citizens’ gold transaction need to be strictly controlled, in which people are not allowed to buy gold, whereas they are later rectified by the financial-currency authorities. However, it has been already covered broadly in the mass media, thus created difficulty for policy makers to overcome policy in the coming period.

2. Handling the economic – currency relationship

Although a number of measures has been taken to curb inflation, there are still some differences in opinion in handling the problems with regard to economic-currency relationship, namely:

(a) Gold is not means of payment, which clearly doesn’t conform to reality. Normally any opinion or action that doesn’t conform to the real nature of the economic phenomenon will hardly be accepted.

(b) One of the solutions to currency stability in recent period is to ban commercial banks from accepting deposits and lending in gold, whereas gold deposits or bank loans in gold is normally applied in other counties./.