Ensure adequate cash supply for Lunar New Year needs

New money exchange, small change flooded online market

The Lunar New Year 2023 is approaching, and as usual, the market for exchanging small bills and new bills to serve the needs of lucky money, spirituality... is also heating up every day.

As the end of the year approaches, the service of exchanging small change and new money for lucky money and going to pagodas is becoming more popular on the internet. According to the advertisement, customers can get whatever they want, with all the bills, original series, original bundles, home delivery service, applicable to customers living far away with various payment methods such as bank transfer, scratch cards, etc. Many account holders even accept wholesale small change and new money for those in need.

On websites, services to exchange new money and small bills are advertised openly and widely. Photo: Thu Huyen

Account Bé H. posted: I accept exchanging new money in denominations of 1,000; 2,000; 5,000; 10,000, 20,000, 50,000; 100,000; 200,000. Available types: New money without original serial number, exchange fee for 1 million is 50,000 VND for all denominations; Regular money selected for 1 million is 40,000 VND for all denominations; New money in original file, original bundle, original serial number, 100% new in denominations of 10,000, 50,000, 100,000, 200,000 with 1 million is 60,000 VND; denomination of 20,000 with 1 million is 70,000 VND.

The average exchange fee ranges from 10 - 15% and the smaller the denomination, the higher the exchange fee. Many accounts also said that the closer to Tet, the higher the fee: "Whoever wants to exchange at a low fee should exchange now, everyone. Accepting deposits from now. The closer to the date, the higher the price, everyone should consider!". Facebook accounts publicly advertise currency exchange services with transaction phone numbers.

When calling a phone number published online, we were greeted by a young man who enthusiastically invited us: "You need to exchange as much as you want, we can exchange as much as you want, the smaller the denomination, the higher the fee for new money is compared to large denomination money..." and made an appointment to pick up the money.

It is known that small change mostly comes from temples, shrines, communal houses, pagodas, and then goes back to the market. New money mainly comes from banks and acquaintances.

Previously, since 2013, the State Bank of Vietnam has stopped issuing new small bills (under 10,000 VND) on the occasion of Lunar New Year, helping to save the budget; along with that, it committed to still providing small denomination bills including old and new bills printed and issued at various times of the year, before Lunar New Year.

The Government has issued a directive requiring the banking sector to ensure sufficient cash supply for the economy's needs with appropriate volume and currency denomination structure. Photo: Thu Huyen

The Government also regularly directs the strengthening of management and operation to stabilize market prices and ensure social order and safety, requiring the State Bank to well organize the regulation and supply of cash to the economy, coordinate with competent authorities to strengthen inspection and promptly handle activities of buying and selling foreign currency, gold and small-denomination cash exchange services that are not in accordance with the law.

According to Mr. Cao Song Diep - Head of General Department, State Bank of Vietnam, Nghe An branch, exchanging small change and new money not only violates the law but also puts people at risk of encountering counterfeit money. To avoid losing money and getting into trouble, people need to be careful, avoid being scammed such as exchanging less money, using illegal money, even counterfeit money, etc. People with accounts at any bank should go to that bank to exchange new money to avoid fees, the amount of money exchanged depends on each bank.

Processstrictly handle illegal money exchange activities

Recently, the Prime Minister issued Directive 22/CT-TTg dated December 26, 2022 on strengthening measures to ensure a joyful, healthy, safe and economical Lunar New Year 2023.

Accordingly, Prime Minister Pham Minh Chinh requested the State Bank of Vietnam to preside over and coordinate with ministries, branches and localities to proactively monitor closely the developments and the world and domestic economic situation to carefully, flexibly and synchronously manage monetary policy tools, closely coordinate with fiscal policy and other macroeconomic policies to contribute to controlling inflation, stabilizing the macro economy, ensuring major balances of the economy; regulate currency reasonably, manage interest rates and exchange rates in accordance with the market situation, macroeconomic developments and monetary policy targets; stabilize the monetary and foreign exchange markets. Strengthen inspection, examination and supervision of the activities of credit institutions and foreign bank branches, ensuring system safety.

Cashiering activities at a bank in Vinh city. Photo: Thu Huyen

Direct credit institutions to meet credit capital needs to serve production and business development of people and enterprises at the end of the year and the beginning of the year; direct credit to priority areas according to the Government's policy; continue to strictly control credit risks in areas with potential risks.

Organize well the work of regulating and supplying cash, meeting the cash needs of the economy in terms of both value and denomination structure; ensure security and safety of treasury; direct the credit institution system to organize well foreign exchange services, increase foreign exchange activities to serve the needs of foreign tourists; coordinate closely with competent authorities to strengthen inspection, promptly detect and strictly handle violations in the buying and selling of foreign currency, gold and currency exchange not in accordance with the law.

The Prime Minister also requested the banking sector to well organize the provision of payment services of the National Interbank Payment System. Direct credit institutions and foreign bank branches to take measures to ensure liquidity and provide stable and safe payment services; direct the organization of the operation of the financial transaction clearing and switching system to ensure the system operates stably, safely, and smoothly 24/7, serving well the payment needs and the increased demand for cash withdrawals through the ATM system before and during the Lunar New Year 2023. Strengthen network security monitoring and deploy technical measures and arrange necessary personnel to ensure the safe operation of payment systems and related systems.