Decree No. 87/1998/ND-CP On the Issuance, Recall, and Replacement of Banknotes and Coins

Article 1. This Decree stipulates the issuance, recall, and replacement of banknotes and coins.

Article 2. The State Bank of Vietnam (hereinafter referred to as the State Bank) is the sole authority responsible for issuing, recalling, and replacing banknotes and coins of the Socialist Republic of Vietnam.

Article 3. In this Decree, the following terms are understood as follows:

1. "Cash" refers to various types of banknotes and coins issued by the State Bank;

2. "Currency announced for circulation" refers to various types of banknotes and coins that have been announced for issuance by the State Bank after being permitted for circulation by the Government;

3. "Currency not yet announced for circulation" refers to various types of banknotes and coins that have been printed, minted, and stored in the State Bank's currency warehouses but have not yet been permitted for circulation;

4. "Currency suspended from circulation" refers to various types of banknotes and coins that lose their circulation value when the State Bank has announced their recall and withdrawal from circulation;

5. "Currency not meeting circulation standards" refers to various types of banknotes and coins that have been circulated but are torn, damaged, or deteriorated according to the State Bank's regulations.

Article 4. The State Bank bases its issuance plan on the annual additional money supply plan approved by the Government; the demand for cash transactions in the economy; the need to replace currency not meeting circulation standards; and suspended currency to determine the quantity and structure of cash needed for circulation based on these requirements.

Article 5. The State Bank establishes a Reserve Issuance Fund and an Operational Issuance Fund within the State Bank system to manage reserve issuance funds.

The Reserve Issuance Fund is stored and managed at the Central Currency Warehouses of the State Bank and the currency warehouses of the State Bank Branches in provinces and centrally-administered cities.

The Operational Issuance Fund is stored and managed at the Currency Warehouses of the State Bank Trading Departments and the currency warehouses of the State Bank Branches in provinces and centrally-administered cities.

Article 6. Sources forming the Reserve Issuance Fund include:

1. New banknotes and coins received from printing and minting factories;

2. Currency recalled from circulation, including those not meeting circulation standards and suspended currency received from the Operational Issuance Fund.

Article 7. Sources forming the Operational Issuance Fund include:

1. Currency received from the Reserve Issuance Fund;

2. Currency recalled from circulation, including those not meeting circulation standards and suspended currency.

Article 8. The State Bank implements the issuance of currency into circulation and the collection of currency from circulation through treasury services, payment services, and other operational activities provided by the State Bank to customers.

1. The State Bank is responsible for meeting the demand for cash receipts and payments for credit institutions and the National Treasury based on the balance of deposit accounts at the State Bank;

2. Credit institutions and the National Treasury are responsible for timely, accurate, and secure cash payment needs for customers.

Article 10. The State Bank guides and supervises credit institutions and the National Treasury in selecting and classifying currency according to circulation standards.

Article 11. Based on the demand for cash in the economy and the requirement for monetary stability, the Governor of the State Bank submits to the Prime Minister for the announcement of circulation of new types of currency that have not yet been issued.

The issuance of new types of currency is regulated in Article 17 of this Decree.

Article 12. The State Bank studies and proposes to the Prime Minister:

1. The structure and denominations of new types of currency issued in accordance with the price level and the customs of using cash by the people;

2. The timing and methods of issuance, recall, and replacement of currency in line with the requirements of monetary policy.

Article 13. The Governor of the State Bank promulgates and monitors the implementation of:

1. Cash regulation systems; systems for the issuance and receipt of the Reserve Issuance Fund and the Operational Issuance Fund within the State Bank system;

2. Accounting, statistical, and reporting information systems for currency issuance operations in compliance with legal provisions on accounting and statistics.

Article 14. The State Bank regularly organizes the exchange of torn and damaged currency as prescribed in Article 16 of this Decree; promotes and guides the public to maintain and protect Vietnamese currency; identifies and prevents prohibited acts as stipulated in Article 29 of the Law on the State Bank of Vietnam.

Article 15. The State Bank specifies torn and damaged currency that does not meet circulation standards, publicly announces these standards, and guides and supervises the State Bank Trading Departments, State Bank Branches, credit institutions, and the National Treasury to implement the exchange of torn and damaged currency for organizations and individuals in accordance with Article 16 of this Decree.

Article 16. The exchange of torn and damaged currency is carried out as follows:

1. Torn and damaged currency due to circulation by organizations and individuals can be exchanged or deposited into accounts at the State Bank Trading Departments, State Bank Branches in provinces and centrally-administered cities, credit institutions, and the National Treasury without limitation on quantity, regardless of place of residence, without payment of fees, and without any required documentation.

2. Torn and damaged currency due to fire, decay, insect infestation, or rodent damage must be accompanied by a written explanation of the cause submitted to the State Bank, credit institutions, or the National Treasury for exchange according to the State Bank's regulations. The person exchanging the currency must pay the fee as prescribed by the State Bank, in accordance with national regulations on fees and charges.

3. Damaged currency due to writing, drawing, cutting, tearing, or deformation; if it is determined not to be the result of deliberate destruction, it will be exchanged according to the provisions of Clause 2 of this Article; if there is suspicion of deliberate destruction, the State Bank, credit institutions, or the National Treasury will temporarily seize the currency and cooperate with the police to investigate and handle the matter.

Article 17. When there is a decision by the Prime Minister regarding the recovery of money from discontinued circulation and the announcement of new money circulation, the State Bank must widely publicize on mass media about:

1. The Government's policy to replace part or all of the currently circulating money types;

2. The form, procedures, time of issuance of new money types; the deadline for recovering discontinued money types uniformly throughout the country;

3. Characteristics, denominations, colors, sizes, weights of each new money type to be issued along with samples;

4. The exchange rate of new money compared to discontinued money, if applicable.

Article 18. The State Bank shall report to the Prime Minister and simultaneously send to the Ministry of Finance on the issuance, recovery, and replacement of money types as stipulated quarterly, annually, or urgently.

Article 19. The Ministry of Finance shall have the responsibility:

1. Inspect the implementation of regulations on issuance, recovery, and replacement of money as prescribed in this Decree.

2. Inspect and direct the National Treasury system to implement relevant provisions in this Decree.

Article 20. The Ministry of Public Security is responsible for:

1. Direct the police at all levels to take the lead and coordinate with the corresponding State Bank to investigate, conclude, and handle according to the law acts of destroying money, manufacturing, transporting, storing, and circulating counterfeit money.

2. Organize appraisals of suspected counterfeit money or destroyed money when requested.

Article 21. Local People's Committees shall be responsible for:

Direct specialized sectors to promote propaganda and mobilize the people to have a sense of preserving and protecting Vietnamese currency; oppose acts of destroying money, manufacturing, transporting, storing, and circulating counterfeit money.

Article 22. Annually, the State Bank will consider or submit to the competent authority for consideration to reward units and individuals with outstanding achievements in implementing this Decree.

Article 23. Units and individuals violating this Decree will be subject to disciplinary action, administrative handling, compensation for damages, or criminal liability追究根据法律规定的性质和程度。

Article 24. This Decree takes effect 15 days after the date of signature. Previous regulations contrary to this Decree are abolished.

Article 25. The Governor of the State Bank, the Minister of Finance, and the Minister of Public Security within their respective functions and duties are responsible for guiding and inspecting the implementation of this Decree.

Article 26. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairmen of People's Committees of provinces and centrally governed cities are responsible for enforcing this Decree./.