Thursday, January 24 2019

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PM asks for prevention of illegal banknote exchanges

Update: January, 04/2019 - 15:30
The management on exchanges of small banknotes would be tightened before, during and after the Tết holidays. - VNA/VNS Photo
Viet Nam News

HÀ NỘI — Prime Minister Nguyễn Xuân Phúc has asked the State Bank of Việt Nam to step up its management to ensure the reasonable use of small banknotes as Tết (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, Phúc asked.

With a month to go before the Tết holidays, demand for small banknotes has already seen a significant rise, especially for banknotes with denominations of VNĐ10,000, VNĐ20,000 and VNĐ100,000, which were commonly used as ‘lucky money’, and denominations of VNĐ1,000, VNĐ2,000 and VNĐ5,000, 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/NĐ-CP, individuals violating money exchange regulations could be fined from VNĐ20 million to VNĐ40 million and the fines were doubled for organisations.

Phúc 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 Tết 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 Việt Nam issued a directive asking credit institutions to ensure ATM service quality, safety and cash supply for Tết which will fall on February 5. — VNS

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