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SBV saves $17.7 million not issuing low-value banknotes

Update: January, 24/2017 - 09:00
The central bank will not issue new banknotes of denominations lower than VNĐ5,000. — Photo baomoi.com
Viet Nam News

HÀ NỘI — The State Bank of Việt Nam (SBV) expects to save around VNĐ400 billion (US$17.7 million) by not issuing new small-value banknotes during the Tết holidays.

The central bank will not issue new banknotes of denominations lower than VNĐ5,000, SBV’s deputy governor Đào Minh Tú said.

This will add to the total savings of VNĐ1.9 trillion since 2013 when the bank decided to not issue new low-value currency during the traditional holiday.

People are in the habit of exchanging money for new small-value banknotes, which are offered during worship at pagodas and temples.

Tú said the decision protected the image of the Vietnamese currency, raised people’s awareness and helped the bank cut costs.

This policy has good local support. Phạm Văn Phúc, a former worker from Hà Nội, said saving VNĐ1.9 trillion is no small thing, and that a lot can be done with that amount to help society. “With this amount, many children in rural areas can go to school instead of missing class to earn a living. It is worth it,” Phúc said. “Each person needs to understand that while worship is a culturally beautiful thing, it will be more beautiful if we are conscious of our behaviour.”

To have small value notes to worship at pagodas and temples, people will have to change their money for small-value notes but receive a lesser amount. — VNS

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