Fresh banknotes exchange fee up to 20 per cent for Tet
The service to exchange fresh banknotes gets far more expensive whenever the Lunar New Year approaches, with many places and social network sellers raising fees by up to 20 per cent.
Exchanging old money to fresh banknotes is becoming a lot more expensive now that the Lunar New Year is coming
As the Lunar New Year is just days away, the demand for exchanging fresh banknotes is increasing. Most people exchange money in the bank and the black market.
Recently, many banks provide small change to customers, however, only for VIPs as there is a quota. A banker from a joint-stock commercial bank in Hanoi shared that this year, the stock of VND10,000, 20,000, and 50,000 ($0.43-0.87-2.17) banknotes is far short of demand.
Meanwhile, in a state-owned bank, a credit officer said that this year, junior banks staff will have a quota of VND8 million ($347) to exchange for customers.
Ha Trung street, Hanoi, has lots of exchange currency stores, most denominations have the exchange fee of 15-20 per cent. Customers who exchange soon and in large amounts will get lower fees.
Last year, VND1,000-2,000 ($0.043-0.087) banknotes are in high demand, raising fees by 200 per cent.
In Dinh Le and Ha Trung streets (Hanoi), exchange fees are quite high. A money exchange co-ordinator at Dinh Le said, “Every denomination is available, and VND1,000 and 2,000 ($0.043-0.087) notes are the most expensive.”
Specifically, VND1,000, 2,000, and 5,000 notes have a fee of 20, 13, and 10 per cent, respectively, these fees are still lower than last year, when VND 1,000 ($0.043) notes cost 30 per cent.
In addition, in the social network, the exchange service is also introduced publicly. The fees are set individually, depending on the value of money to be exchanged, but transaction fees are lower on the "black market" in Dinh Le or Ha Trung. Specifically, VND50,000 ($2.17) banknotes charge 2.2-3 per cent, while VND5,000, 10,000, and 20,000 ($0.43, 0.87, 0.22) charge 3-5 per cent, VND2,000 ($0.087) is 6-9 per cent, and VND1,000 ($0.043) is 9-12 per cent, mostly the same as last year.
This year, as the Year of Rat, the $2 bill with pictures of two gilded mice that signify good fortune and wealth for owners and their household. The $2 bills will cost VND5.2-5.4 million ($217) per bunch (100 sheets).
Previously, the State Bank of Vietnam (SBV) announced that it will not release small change, including VND100, 200, 500, 1,000, 2,000, and 5,000 (0.43, 0.87, 2.17, 4.35, 8.7, and 21.74 US Cents) notes for 2020.
This policy has been implemented by the SBV for many years, helping to save hundreds of billions of VND a year. However, this is also the reason why many small change retailers operate publicly.
Although the SBV did not print small change and new banknotes for 2020, on this occasion, the SBV circulates about VND430 trillion ($18.7 billion), according to Vietnam News Agency.
In this Lunar New Year, the amount of small banknotes available for exchange increased by about 15 per cent compared to 2018, equivalent to over VND370 trillion ($16.1 billion).