Online money exchange services are booming in Nghe An.

Towards the end of the year, the demand for new banknotes and small denominations for Tet (Lunar New Year) celebrations and temple visits led Mr. Nguyen Hoai Nam (Hung Loc Ward, Vinh City) to visit banks where he is a regular customer. However, the amount of new and small denomination banknotes available to customers is limited to 2-3 million dong. “My job involves many transactions with banks, making me a VIP customer at many. However, exchanging tens of millions of dong in brand-new, consecutive series is very difficult, especially for low-denomination notes.”

Mr. Nam said that bank employees explained that for the past five years, the State Bank of Vietnam has not issued banknotes with denominations below 50,000 VND during the Lunar New Year. Therefore, many bank employees have to find ways to politely refuse, so as not to offend customers or their relatives, or they gather money for quick exchange in order to maintain relationships.

Ms. Nguyen Thi Thu Huong, an employee at VIB International Bank on Quang Trung Street (Vinh City), said: “Currently, our branches do not have new banknotes to exchange for customers; only a small amount of used banknotes is reserved as a token of appreciation for our loyal customers. There is absolutely no exchange service available.”

While traditional banks don't exchange new banknotes during Tet (Lunar New Year), demand remains high. This has created opportunities for online money exchange services to emerge. Starting in the twelfth lunar month, services for exchanging small denominations and new banknotes for giving as lucky money or visiting temples at the beginning of the year have become rampant on social media. Many personal Facebook users openly post offers for exchanging small denominations and new banknotes with attractive promises: low exchange fees, guaranteed genuine banknotes, banknotes in consecutive serial numbers, and any amount you want. Notably, these services even offer home delivery, allowing customers to inspect the money before receiving it.

Acting as a customer needing to exchange new banknotes in consecutive denominations of 20,000, 50,000, and 100,000 VND, an account named LTP (Vinh City) stated that the exchange fee ranges from 30,000 to 50,000 VND per million VND (depending on the denomination). Exchanging early allows for a selection of denominations, while exchanging later may result in shortages. The transaction method involves a small deposit upfront, with the remaining balance and exchange rate difference paid upon receipt of the exchanged money. Alternatively, cash on delivery is possible.

According to our investigation, it is known that those providing this money exchange service also go through another agency. They "buy" new and small denomination bills from these people and then use them for their services. Ms. L., a money exchange service provider in Thanh Chuong, said: "During Tet (Lunar New Year), the demand for new bills for giving as gifts and for offerings at temples and pagodas increases, so I exchange new bills from the agency, then exchange them for people who need them and profit from the difference. The fee for new bills is higher than for used bills, and I guarantee they are genuine because I use a money scanner to check them. Also, the people I exchange money with are all acquaintances, so trustworthiness is essential."

Besides exchanging new and small denomination banknotes, these accounts also advertise the sale of lucky money, unique and rare banknotes, and foreign currencies from various countries. These types of money are mostly imported directly from abroad, with selling prices often many times higher than their actual face value, depending on the rarity and uniqueness of the currency. For example, banknotes with serial numbers matching the recipient's birth date are priced at double their actual value (for instance, a 200,000 VND note with a serial number matching the birth date would sell for 400,000 VND); a gold-plated snake-shaped 2 USD note costs 140,000 VND/note; a pair of gold-plated or silver-plated Australian snake coins with a red brocade pouch costs 80,000 VND/pair; a Buddha coin costs 60,000 VND/coin; a gold-plated lucky god Hong Kong coin costs 60,000 VND/coin…

Exchanging small denominations and new banknotes is a common need and habit for many people. Where there's demand, there's supply, but according to the law, all acts of buying and selling or exchanging money are prohibited and will be punished if discovered. Furthermore, many people have fallen victim to scams when participating in online money exchange programs, such as having their Facebook accounts blocked and messages intercepted by the service provider after they transferred the deposit; or receiving counterfeit money instead of real money…

Therefore, to put an end to illegal money exchange services, consumer habits must change, regardless of whether the money is new or old; offerings and donations to temples should be voluntary, and currently, temples have QR codes for Buddhists to make donations via bank transfer. At the same time, it is necessary to intensify propaganda and encourage people not to exchange small denominations or new banknotes at unlicensed organizations or individuals, to avoid risks and violations of the law.