Sunday, October 31, 2010
Vietnam stops banks using gold deposits to fund loans
I have highlighted the main issues from this Reuters story below. You have to love the Commies, how dare the people keep their savings in Gold instead of The Party's wonderful fiat Dong currency! Gee the people in Vietnam have only been saving in gold and silver since about 2,000BC and have had Indian, Chinese, French, US and their own currencies come and go from their economy over thousands of years, yet Gold has always remained the savings vehicle of choice, and will remain so even when the Dong is long gone.
Oct 29 (Reuters) - Vietnam's central bank has stopped banks selling gold deposited by customers and using the funds for loans or for converting into foreign currencies, partly to help take downward pressure off the dong............Small gold bars, sold by banks and private gold shops, are used widely in Vietnam instead of the dong as a savings vehicle and for real estate payments..........The central bank has devalued the dong three times since November and speculation about another devaluation has been putting pressure on the currency.