Small face value polymer bank notes to be printed
 

VNECONOMY

Source: VnExpress

20.12.05

State Bank of Vietnam (SBV) considers issuing VND10,000 and 20,000 polymer banknotes. The central bank refused to reveal details of the plan on bank note issuance, as SBV Deputy Governor Nguyen Thi Kim Phung said that the plan must first be approved by the government.

SBV requires credit institutions to supply four face value notes in their ATMs, including small denominations; however, many find it difficult to follow as VND10, 000 and VND20, 000 cotton bank notes have all become old and crumpled, and do not meet technical requirements.

In the short term, Vietnam Bank for Foreign Trade (Vietcombank) plans to supply VND10,000 and VND20,000 notes in their ATMs as of Tet holiday; however, they hope that SBV will print polymer notes to make it more convenient to supply money through ATMs.

According to Nguyen Chi Thanh, Head of the Issue and Vault Department under SBV, in order to ATM obstructions, banks have to sort old notes by hand. Circulating in an environment of high humidity, the average life expectancy of cotton bank notes is approximately 1.5-3 years.

Though admitting many strong points of the polymer notes, people often complain about other characteristics, such as the notes being difficult to fold, or becoming easily deformed by high heat.

Phung said that SBV was aware of these weak points before issuing. Brian Lang from New Zealand’s central bank said that they are facing similar problems after six years of issuance. According to Phung, many other countries are seeking solutions to settle the notes shortcomings.