Small banknotes
limited in circulation
The State Bank of Vietnam said they will set a
limit for printing new small banknotes because of the high cost of making
them and their proliferation of use at pagodas.
Normally,
the SBV prints more small banknotes before Tet, but in reality, only a small
amount of them are used for trade. The rest are used for religious donations
then returned to bank vaults. Last year, pagodas in My Duc District, Hanoi collected about
1,200 sacks of small banknotes that were worth 20 billion (USD959,000). The
bank had to sent 10 trucks to carry the money.
People push inside
the glass
In
Vietnam
tradition, people usually donate small banknotes to pagodas after worship,
wishing for luck. However, this tradition is being criticised of late
because, instead of putting the money into donation boxes, people tend to
leave it haphazardly, placing on the statues or even throwing on the ground.
Ground strewn with
money
Many monks have also
commented that worshipers should use fewer banknotes. "Huong Pagoda in Hanoi's My Duc District is often strewn with small
change and the wells and lakes of Hung Kings' Temple in Phu Tho Province is also covered
with small money. I think people should use one or two bigger banknotes to
donate instead of throwing small change everywhere," said the deputy
head of SBV, Dao Minh Tu.
Tu
went on to say that it it costs more than VND300 billion each year for
printing new small banknotes, causing more waste to the budget.
The
decision has created new opportunities in the black market. One trader
operating from Nguyen Xi Street,
in Hanoi
asked for a VND300,000 'service fee for customers who wanted to change
VN500,000 into VND500 notes. "The VND500 notes are becoming rare, so I
don't have very many. The banks only issue this note near Tet," the
trader said.
Changing
denominations becomes service
This
service is also bustling on internet, with many attractive offers such as low
fees for high value changes or free delivery.
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