An officer of the Hanoi Branch of the State Bank said that the amount of 50,000 dong bank notes to be put into circulation on the lunar New Year holiday would be smaller than the previous years. Especially, 20,000 dong bank notes would be in scarce.
He went on to say that the plan to issue new bank notes on the New Year holiday to serve people’s demand was set up right in 2011. The principle is that the State Bank would provide new bank notes based on the actual demand, and that new bank notes must not flow out to the black market.
The information from the State Bank has raised the worry among people that the supply would not satisfy the demand. Vietnamese people have the habit of convert money into new bank notes and small change which they will use when going to pagodas on the New Year days or give to children as Tet presents.
Minh, an officer of the Bac Ninh branch of a joint stock bank, said that her branch only gets from the State Bank 200 million dong in new bank notes, while there are very few 500 dong, 1000 dong and 2000 dong bank notes – the most wanted bank notes for people.
Minh herself feels worries that she would not get enough small change she needs. “I tried to contact a friend who works for a state owned bank. However, she said she cannot promise to help, because she has been told that the State Bank would provide new bank notes in limited amount this year,” Minh said.
Meanwhile, director of a BIDV branch has also said that he decided to reserve small change to offer to the clients who have good relations with the bank, while even the bank’s officers would only get small amounts of bank notes.
Thanh Huong, Deputy Director of Agribank Exchange at No 2 Lang Ha Street, has also said that the officers of the branch have not got any new bank notes.
Sources said that the number of 500 dong bank notes would be decreasing, because the State Bank would not issue new bank notes, while only the bank notes which have been put in stocks since the last year would be put into circulation. Meanwhile, 20,000 dong bank notes have been issued in big quantities, and if more bank notes of this kind are printed, this would be a big waste.
Black market scorching hot
While bank officers all say that they do not have new bank notes, the black market is very bustling, where suppliers promise to satisfy all the demand.
A servicewoman on the Nguyen Xi small change market said on January 10 that she has new bank notes with different face values. If people want 10,000 dong bank notes, they would have to pay 100,000 dong and get back 80,000 dong. Meanwhile, the fee is higher for the bank notes with smaller face values. “You have to pay 100,000 dong to get 70,000 dong back in 1000, 2000 and 5000 dong bank notes.
“The fees could be valid for this week, while they may be different the next week. Everything would depend on people’s demand,” the woman said. “The supply from commercial banks is very short,” she added.
Besides the Nguyen Xi small change market, a lot of other markets have also arisen, especially the ones gathered near the pagodas. At the markets next to the Quan Su and Phuc Khanh pagodas, clients have been told to pay 300,000 dong for 100 bank notes with the face value of 200 dong, and 600,000-650,000 dong for 1000 bank notes with the face value of 500 dong.
However, if converting money at the markets, clients would still have to accept old bank notes as well.
Source: Tien phong
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