Vietnam c.bank denies plan to scrap low-denomination banknotes

The State Bank of Vietnam (SBV) said posts circulating online had alleged that the bank intended to eliminate banknotes with denominations ranging from VND1,000 (US$0.038) to VND5,000 ($0.19). 

The central bank said those claims were inaccurate and had no legal basis.

In a statement, the State Bank said the issuance, management, and circulation of the Vietnamese currency are carried out in accordance with the law and are designed to meet the payment needs of the economy, reflect social conditions, and protect the legitimate rights and interests of individuals and businesses.

The central bank urged organizations and individuals not to post or share unverified information about the alleged removal of low-denomination banknotes, warning that violations would be handled in line with legal regulations.

In Vietnam, the SBV is the sole authority authorized to issue currency. 

The country currently has 12 banknote denominations in circulation, made of polymer and cotton paper, as well as five coin denominations, all of which remain legal tender.

Polymer banknotes comprise six denominations, including VND500,000 ($19), VND200,000 ($7.62), VND100,000 ($3.8), VND50,000 ($1.9), VND20,000 ($0.76), and VND10,000 ($0.38), while cotton paper notes, mainly lower denominations, include VND5,000, VND2,000, VND1,000, VND500, VND200, and VND100.

The SBV noted that similar rumors have surfaced repeatedly in the past, including claims about issuing higher-denomination banknotes, which it has previously rejected.

In 2013, the central bank said it had no plan to redenominate the currency or make changes to banknotes in circulation, citing the stability of the Vietnamese dong and saying the existing structure of banknotes remained appropriate.

The SBV also reiterated that it has no plan to issue a VND1 million ($38) banknote.