Prime Minister Nguyen Xuan Phuc has asked the State Bank of Viet Nam to step up its management to ensure the reasonable use of small banknotes as Tet (Lunar New Year) holidays approach.

 Violations in small banknote exchanges as well as in the exchange of foreign currencies and gold transactions must be handled strictly, Phuc asked.

With a month to go before the Tet holidays, demand for small banknotes has already seen a significant rise, especially for banknotes with denominations of VND10,000, VND20,000 and VND100,000, which were commonly used as ‘lucky money’, and denominations of VND1,000, VND2,000 and VND5,000, which were used as donations for pagodas and temples.

The fees for small banknote exchanges ranged from 10 per cent to up to 400 per cent on the black market, depending on the denomination.

According to Decree 96/2014/ND-CP, individuals violating money exchange regulations could be fined from VND20 million to VND40 million and the fines were doubled for organisations.

Phuc also asked the central bank to ensure adequate cash supply as well as smooth and secure operation of ATMs and POSs before, during and after the Tet holidays.

Close watch must be placed on the developments of the domestic and the world financial and monetary markets together with enhanced inspection on the operation of credit institutions and foreign banks’ branches to ensure system liquidity and safety.  

At the end of December, the State Bank of Viet Nam issued a directive asking credit institutions to ensure ATM service quality, safety and cash supply for Tet which will fall on February 5. — VNS