Vietnam central bank dismisses rumors of small-denomination banknote withdrawal
The State Bank of Vietnam has dismissed online rumors about scrapping small banknotes, affirming that all denominations remain in legal circulation to meet payment needs and protect the lawful interests of citizens and businesses.
THE HANOI TIMES — The State Bank of Vietnam (SBV) has rejected claims that it plans to withdraw banknotes with denominations ranging from VND1,000 ($0.04) to VND5,000 ($0.19), saying the information is inaccurate and lacks legal basis.
Vietnam central bank denies plan to withdraw VND1,000-VND5,000 banknotes. Photo: Lao Dong Newspaper
In a statement issued late on January 23, the State Bank of Vietnam responded to rumors circulating on social media suggesting that the regulator was considering removing small-denomination banknotes from circulation.
According to the SBV, the issuance, management, and circulation of Vietnamese currency are carried out in strict compliance with the law. These activities aim to meet the economy’s payment needs, reflect socio-economic realities, and protect the legitimate rights and interests of individuals and businesses.
The central bank also urged organizations and individuals to refrain from posting or sharing unverified or misleading information regarding the alleged withdrawal of VND1,000 ($0.04) to VND5,000 ($0.19) banknotes, warning that violations would be handled in accordance with current regulations.
Vietnam currently has a total of 17 denominations that remain legal tender, including 12 banknote denominations (made of polymer and cotton paper) and five coin denominations.
Among them, six polymer banknotes are in circulation, with face values of VND500,000 ($19.05), VND200,000 ($7.62), VND100,000 ($3.81), VND50,000 ($1.91), VND20,000 ($0.76), and VND10,000 ($0.38).
Cotton-paper banknotes, mainly used for small transactions, include six denominations: VND5,000 ($0.19), VND2,000 ($0.08), VND1,000 ($0.04), VND500 ($0.02), VND200 ($0.01) and VND100.
Although authorities no longer mint coins and lower-value denominations such as VND100, VND200 and VND500 rarely appear in daily transactions, the central bank continues to recognize them as legal tender.
