It is traditional for individuals and companies to give out small, new bills during Tet. But this year many banks have made the custom more difficult. An employee of one company in Ho Chi Minh City noted that, "Despite the fact that we have been asking the bank for the service, we have only received half the amount requested."

Large commercial banks such as Vietcombank, BIDV, Agribank, Techcombank, ACB and Maritime Bank do not offer the small change service.

“We only exchange damaged bills in order to take them out of circulation. We don't provide small notes for Tet," said an employee from ACB.

Nguyen Ngoc Thang, Deputy Director of the State Bank of Vietnam’s Ho Chi Minh City Branch, said, “We do not have a plan in place to provide an exchange service for small bills during Tet." 

Lan Huong, an accountant for a state-owned issuance company, said that, despite having registered with banks weeks in advance, they were only allowed to change VND3 million (USD142.85) into VND50,000. Smaller notes, of VND10,000 or VND20,000 were not available.

Conscious decision on the part of SBV

The State Bank of Vietnam (SBV) has reduced the amount of smaller notes during the holiday this year. After Tet, they say, there is a problem with the small bills accumulating at stores, causing circulation problems.

According to the My Duc District branch of the Vietnam Bank for Agriculture and Rural Development’s in Hanoi, they regularly receive large amounts of money in small change from Huong Pagoda. Recently, the pagoda exchanged VND3 billion (USD142,857) in small bills, causing extra work for the staff as well as transport problems. 

Exorbitant fees in the black market

The problem has become an opportunity for some businesses. A number of shops on Dinh Le Street, for example are now charging 35% to 45% to exchange large bills into small ones, depending on the amounts.

Exchange rates in other areas of the city, such as Tay Ho Place, Bia Ba Temple and Ha Pagoda, are even more shocking, charging a 3 to 1 to change  VND50,000 to VND500. 

Mrs. Bich, who specialises in the service on Dinh Le Street, said she can deliver the money to customers anytime as long as the amount is large enough. She will offer the service until the New Year’s Eve, but of course, at a price.

The traders usually try to hide their activity, often appearing on streets around Hoan Kiem Lake in the late afternoon or early evening. 

An official from a Hanoi-based commercial bank, said that there no laws which specifically allows the exchange service, but also no laws to ban it. But in principle, he said, the activity goes against policies on money management. Still, he added, it is a difficult thing to regulate, especially at temples and pagodas.