SBV says will not print small banknotes for Tet

Thuy Dung

An unidentifi ed person counts small denomination banknotes. The SBV will not be printing new banknotes of VND5,000 and below for the upcoming Tet as in previous years to restrict the circulation of small denomination notes - PHOTO: KIEU GIANG

SBV deputy governor Dao Minh Tu told a media briefing in Hanoi on January 12 that the central bank would not be printing small denomination banknotes for the upcoming Tet holiday as it did in 2013-2015.

The central bank said it could save around VND1.5 trillion (US$66.6 million) from not printing new notes of small value in four years.

However, the central bank will tell its branches in provinces and cities to use available small denomination notes to meet Tet demand. Tu said the move will help the SBV and the banking system cut costs of printing, transport, storage and classification.

A representative of the Ministry of Culture, Sports and Tourism told the media conference that the use of small denomination notes is not only a burden for the State budget in terms of printing cost but also for temples and pagodas as they have to collect, classify and store huge amounts of small denomination notes after Tet.

Tu pledged stable operation for the e-payment system on the inter-bank market during Tet. Banks will increase office hours by one hour from February 1 to 5 to meet soaring demand for payments of individuals and organizations ahead of Tet.

Banks are told to announce plans to serve import-export firms and foreign-invested enterprises at industrial parks and export processing zones since many of them may operate as normal during Tet and need foreign currencies to settle payments. In addition, banks have to maintain their foreign exchange service to serve expats and foreign tourists at Tet.

Tu said the SBV has prepared plans to provide cash for individuals and organizations during the longest holiday in Vietnam. The central bank will inspect banks and tell them to supply sufficient banknotes of different denominations for customers and ensure the normal operation of their automated teller machines (ATMs).

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