New bank note circulated
A new bank note with the denomination of VND100,000 will be circulating in
Vietnam as of September 1 this year. The State Bank of Vietnam announced
the Prime Minister’s decision at Wednesday’ news briefing in Hanoi.
The Deputy Governor of the State Bank of Vietnam, Nguyen Thi Kim Phung
told VOV News about the purpose of the new bank note, "The new bank note
worth VND100,000 originated from the necessity for notes of greater value.
They also enable the State Bank to gradually withdraw issued payment bonds
of low face value to lower costs of printing and delivery."
Vietnam has circulated payment promissory notes worth from VND100,000 to
VND5,000,000 since 1992 to reduce the economy’s pressure of cash supply.
Therefore, with the new bank note, the State Bank of Vietnam will gradually
withdraw promissory notes less than VND500,000. In addition, the new bank
note meets high technical criteria against copying and counterfeit. It is the first
time that Vietnam has used the technology of mercurial colour inking and
printing, a safety metal thread and top quality printing paper in combination
with technical factors.
Ms Kim Phung says the issuance of the new bank note of VND100,000 is not
designed to increase the volume of money circulated in the market, but to
expand the structure of the currency denominations in circulation to meet the
demand of the current economy. It matches the Government’s decree on
non-cash payment and the State Bank of Vietnam’s draft decree on payment.
This does not affect monetary policy, interest rates, investment and
transactions. The new bank note of VND100,000 facilitates the circulation of
money and payment, safe delivery costs, transportation, and preservation as
well as enhancing the value of the VND in both technical and cultural aspects.
Voice of Vietnam - August 31, 2000.
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