Vietnam Central Banker Rejects Rumors of Demonetization

Tuan Minh

10:17 30/11/2016

BizLIVE - A Vietnamese central banker has refuted reports that the country would initiate a process to change banknotes.

Vietnam Central Banker Rejects Rumors of Demonetization

The information on demonetization in Vietnam is untrue, said a central banker. Photo: phunungaynay.vn

The rumors on an upcoming demonetization process by the Vietnamese central bank are groundless and untrue, said a central banker at a regular press meeting with government officials on November 29.
Deputy Governor of the State Bank of Vietnam made the statement when asked about information that locals are rushing to buy gold and foreign currencies due to fears that a mass exchange of defunct notes for fresh ones is coming.  
“We must be alert to such types of information because demonetization relates to national monetary security,” said Tu. “Given our stable and developing economic conditions, all those sorts of information are harmful. I reassert that this information is fabricated.”
The central banker informed that total credit of the local banking system grew 14.03% in the year to November 22, driven by a 15.28% increase of Vietnamese dong-denominated loans and a 2.8% expansion in lending in foreign currency.
A credit growth rate of 17-18% this year is rational and attainable as lending is usually stronger in the final months of the year, Tu added.

TUAN MINH