SBV saves billions by stopping cash-press at Lunar New Year
Vnexpress.net quoted Pham Bao Lam, director of the Issue and Vault Department, as saying that the SBV will not issue fresh VND10,000 bills in the 2019 Lunar New Year.
According to data published by the SBV’s Issue and Vault Department, not issuing small-value banknotes (VND2,000 and below) since 2013 has helped the bank save VND2.6 trillion ($113 million), including VND390 billion ($16.95 million) in the 2019 Lunar New Year.
The department also stated that from April to November 2018, the SBV boosted the circulation of bills under VND10,000, both old and new bills.
Despite not issuing fresh bills this year, the total amount of fresh banknotes with small value is forecast to increase by 25 per cent on-year,including the banknotes issued in 2018 and bills in circulation, according to the SBV.
According to the Issue and Vault Department, from now to the Lunar New Year, the department will supervise the circulation of fresh bills across the country and prepare the supply of reserves to meet the high demand for fresh bills during the Lunar New Year holiday.
Over the past few years, the State Bank of Vietnam has been setting aside great amounts of fresh bills to meet the local demand of giving banknotes to children and donating money to temples for the New Year, allowing people to exchange banknotes without a surcharge at commercial banks.
However, bank personnel have been taking the fresh bills to the black market instead, where they can pass them on at a profit. This may partially explain why banks are seemingly out of fresh bills while black market vendors are confident in meeting large orders – as well as the SBV attempts to put a stop to fresh-cash services.
This attempt also includes the SBV’s policy to stop issuing fresh bills since 2013. In the 2018 Lunar New Year, the SBV saved VND280 billion ($12.2 million) thanks to not issuing VND5,000 bills.