Exchanging small change and new money in Nghe An: Banks are scarce, the 'black market' is bustling
(Baonghean.vn) - During Tet, the demand for exchanging small denominations and new money to give as lucky money or to go to temples and pagodas increases. Currently, when asking banks, they all say that they do not have small change or new money. However, on personal Facebook pages, this service is quite active... even though it is an illegal act.
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| On social networking sites, coin exchange service groups take place openly and loudly, attracting many people to make transactions. Photo: Thanh Phuc |
With a few days left until Lunar New Year, many customers who come to banks want to exchange small bills or new money, but most banks refuse them with the reason of "running out of money".
According to a survey by Nghe An Newspaper, while banks in Vinh city reported that they had no new money or small change, this market was very active on Facebook and at money exchange points at votive paper shops, next to temples and pagodas.
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| Transaction fees for exchanging small change and new money range from 10-30% (depending on denomination). Photo: Thanh Phuc |
These money exchange points guarantee that they will have any amount and will always have new money, original series.
According to research, for bills with denominations of 5,000 VND, 10,000 VND, 20,000 VND, the exchange fee is 20-30% (ie, exchanging 1 million VND costs 200,000 VND - 300,000 VND in fees); bills with denominations of 50,000 VND, 100,000 VND, the fee is 10-15% (ie, exchanging 1 million VND costs 100,000 - 150,000 VND in fees). Below each notice of exchanging small change are hundreds of transaction comments. Contacting a Facebook account providing small change exchange service, Ms. VH said: "The closer to Tet, the "hotter" this service is, the smaller the denomination of the bill, the higher the fee. Especially the 5,000 VND bill, which is very scarce at present.
In addition, at Ong Hoang Muoi Temple, the kiosks around the temple all provide small change exchange services with denominations from 1,000 to 10,000 VND (including old and new bills) with an average fee of 20%. The customers that the kiosk owners aim for are people who go to temples, pagodas, and put in donation boxes, lucky money, and offerings.
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| Customers come to gold shops to exchange foreign currency, mainly 2 USD bills, and buy lucky mouse-shaped gold coins. Photo: Thanh Phuc |
Currently, gold shops also offer foreign currency exchange services with a face value of 2 USD, which many people believe is a lucky note. However, the number of people coming to trade is not much, and the exchange fee is around 15-20%.
According to regulations, exchanging small change for profit and taking fees is an illegal act. Decree 96/2014 clearly states that the fine is from 20 to 40 million VND for the act of exchanging money not in accordance with the law. This fine is applied to individuals who violate the law, while organizations that violate the law will be fined twice as much.
