Small change in short supply ahead of Tet

Published: 24/01/2011 05:00

0

292 views




The demand for low denomination
banknotes has increased sharply ahead of Tet (lunar New Year), causing a
headache for both banks and the public, but playing into the hands of black
market traders.


People wait to get low-denomination
banknotes from a black market trader in Ha Noi. Low-denomination notes are used
during Tet as lucky money to give to children, friends and the elderly. (Photo: VNS)

Nguyen Thanh Lan of
Long Bien District said she needed VND500 (US$0.025) and VND1,000 ($0.05) notes
to offer at Buddhist altars but after going to three banks, she was still unable
to find them.


Cashiers from banks
including Maritime Bank and Vietcombank also told Viet Nam News that they had
been unable to change money since last week because of the limited amount
released by
the State Bank of Viet Nam.


Only regular clients
and bank staff had access to the service.


Low denomination
notes are used during Tet as lucky money to give to children, friends and the
elderly in the belief they bring wealth, health and luck.


Le Dinh Nham, deputy
director of Ha Noi-based Agribank, said that for the last month, the bank had
been exchanging small notes for the public, but it had got to a point where they
had started to prioritise who were eligible.


Nguyen Chi Thanh,
director of
the State Bank of Viet Nam’s Issuance and Vault Department, said
besides accommodating the demand for cash at the year-end, the central bank
would also issue new bills including low denomination notes.


However, the high
demand for the notes would put pressure on the banking system and when Tet
finished, there would be imbalanced cash circulation, Thanh said.


While banks are
failing to meet the demand, black market trade is booming.


Popular spots to
exchange currency in Ha Noi include Hoan Kiem District’s Nguyen Xi Street and
Dinh Liet Street.


Smaller bills are
proving more expensive, with on average a 20-30 per cent mark up.


Online money
exchange


Tran Anh Tuan, a
student of the University of Natural Science, launched a website that offers
money exchange services in Ha Noi, HCM City and other provinces last year,
.


His fees range from 4
to 55 per cent of the transaction value depending on the denomination of the
notes.


“On average, I earn
VND15-20 million ($750-1,000) each month,” Tuan said.


He employs 20
students to deliver the cash and also employs more students to collect small
value banknotes at universities.


In the lead up to Tet,
Tuan said there were days when he exchanged up to VND2 million ($102) for each
client.


VietNamNet/Viet
Nam News

Provide by Vietnam Travel

Small change in short supply ahead of Tet - Social - News |  vietnam travel company

You can see more



enews & updates

Sign up to receive breaking news as well as receive other site updates!

Ads by Adonline