Nguyen Chi Thanh, an official of the State Bank of Vietnam (SBV), said the bank has made a proposal to restart circulation of coins, which would solve some of the problems that caused their temporary discontinuation. The proposal has got the approval from the prime minister, and as a result, coins will continue to be minted and put into circulation. The SBV will be responsible for maintaining the quality and integrity of coins in circulation.

The SBV has issued coins with denominations of VND5,000; VND1,000 and VND200 since December 17, 2003. On April 1, 2004, they added coins with values of VND2,000 and VND500 in order to increase the amount of coins in circulation.

However, the number of coins actually being circulated has been falling over the past nearly nine years.

Former SBV Governor, Nguyen Van Giau, admitted at the 11th National Assembly’s 6th session that the plan on boosting coin use had been ineffective.

The SBV stopped issuing new coins in 2010 due to rising steel prices, which made them considerably more expensive to produce than polymer banknotes.

In May 2012, Le Thi Thanh Hang, Deputy Director of the SBV’s branch in Ho Chi Minh City, confirmed that the bank had yet to issue any directive on recalling coins.

Concerning the possibility of halting the circulation of cotton money with face values of VND10,000 and VND20,000, Thanh said that these notes ceased being circulated beginning January 1, 2013. He added that any individual or organisation could exchange these notes for others of equal value.

He said that all the counterfeit polymer currency detected between 2004 and 2011 was only one third of that detected in cotton bills between 1997 and 2004.

The volume of fake money seized by banks and the state treasury has been significantly falling each year of the 2007-2012 period.

By Nguyen Hien - Dan Tri Internationam News - January 15, 2013