Laws of Vietnam

DECREE No. 87/1998/ND-CP OF OCTOBER 31, 1998 ON THE ISSUE, WITHDRAWAL AND REPLACEMENT OF PAPER MONEY AND METAL MONEY

THE GOVERNMENT

Pursuant to the Law on Organization of the Government of September 30,1992;

Pursuant to the Law on the Vietnam State Bank No. 01/1997/QH10 of December 12, 1997;

In order to supply enough paper money and metal money to the economy; ensure smooth circulation; protect the currency in circulation; ensure the legitimate interests of organizations and individuals in the use of paper money and metal money;

At the proposal of the Governor of the State Bank,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- This Decree provides for the issue, withdrawal and replacement of paper money and metal money.

Article 2.- The Vietnam State Bank (hereunder called State Bank for short) is the only agency to issue, withdraw and replace paper money and metal money of the Socialist Republic of Vietnam.

Article 3.- In this Decree the following terms are construed as follows:

1. "Cash money" are the paper money and metal money issued by the State Bank;

2. "Money already declared in circulation" are the various kinds of money paper and metal money of which the State Bank has announced the issue after the Government allows their circulation;

3. "Money not yet declared in circulation" are the various kinds of paper money and metal money which have been printed, cast and stored at the money stores of the State Bank but not yet allowed to circulate;

4. " Money suspended from circulation" are the paper money and metal money which have no circulation value after the State Bank has announced their retrieval and withdrawn from circulation;

5. " Money not qualified for circulation" are the paper money and metal money in circulation but which are torn or damaged as stipulated by the State Bank.

Chapter II

ISSUE OF MONEY

Article 4.- The State Bank shall base itself on the plan of annual increased money supply already ratified by the Government; the need of payment in cash of the economy; the need of replacement of money not qualified for circulation; money suspended from circulation to determine the quantity and structure of the various kinds of cash that need to be issued into circulation according to the above needs.

Article 5.- The State Bank is allowed to set up an Issuing Reserve Fund and an Issuing Profession Fund in the system of State Bank to manage the issuing reserve money.

The Issuing Reserve Fund is preserved and managed at the central money stores of the State Bank and the money stores of the branches of the State Bank in the provinces and cities directly under the Central Government.

The Issuing Profession Fund is preserved and managed at the money stores of the State Bank transaction service and the money stores of the branches of the State Bank in the provinces and cities directly under the Central Government.

Article 6.- The sources of the Issuing Reserve Fund include:

1. Newly printed or cast money taken from the money printing and casting factories;

2. Money withdrawn from circulation, including the kinds of money not qualified for circulation and money suspended from circulation taken from the Issuing Profession Fund.

Article 7.- The sources of the Issuing Profession Fund include:

1. Money taken from the Issuing Reserve Fund;

2. Money withdrawn from circulation, including money not qualified for circulation and money suspended from circulation.

Article 8.- The State Bank issues money into circulation and withdraws money from circulation through the treasury, payment services and other professional activities of the State Bank in service of customers.

Article 9.-

1. The State Bank has the duty to meet the need of collecting and spending cash for the credit institutions and the State Treasury on the basis of the balance of the deposits account at the State Bank;

2. Credit institutions and the State Treasury have the duty to meet the need of timely, accurate and safe payment in cash to customers.

Article 10.- The State Bank guides and inspects the credit institutions and the State Treasury in the selection and classification of money by the standard of the money in circulation.

Article 11.- Basing himself on the need in cash of the economy and the need of monetary stability, the Governor of the State Bank shall propose the Prime Minister to decree an announcement on the circulation of new kinds of money to be issued.

The announcement of the issue of the new kinds of money is provided for in Article 17 of this Decree.

Article 12.- The State Bank shall study and propose to the Prime Minister:

1. The structure and nominations of the money newly issued in conformity with the price platform and habit of cash use of the population;

2. The point of time and form of issue, withdrawal and replacement of money in conformity with the need of the monetary policy.

Article 13.- The Governor of the State Bank shall issue and inspect the implementation of:

1. The regime of regulation of cash, the regime of exit and entry of the Issuing Reserve Fund and the Issuing Profession Fund in the system of State Bank;

2. The regime of accountancy, statistics and information and report on the issue of money in conformity with the prescriptions of the legislation on accountancy and statistics.

Chapter III

WITHDRAWAL AND REPLACEMENT OF MONEY

Article 14.- The State Bank shall regularly organize the replacement of torn and damaged money as stipulated in Article 16 of this Decree; educate and guide the people in the sense of preserving and protecting the Vietnamese currency, detecting and preventing acts banned under Article 29 of the Law on the Vietnam State Bank.

Article 15.- The State Bank shall provide for torn and damaged and otherwise unqualified for circulation, publicly announce these criteria, and guide and inspect the Transaction Service of the State Bank and the Branches of the State Bank, the credit institutions and the State Treasury in replacing torn and damaged money for organizations and individuals as prescribed in Article 16 of this Decree.

Article 16.- Money that are torn off or damaged shall be changed according to the following regulations:

1. Money of organizations and individuals that are torn off or damaged in the process of circulation shall be changed or remitted to the accounts at the Transaction Service of the State Bank, the Branches of the State Bank in the provinces and cities directly under the Central Government, credit institutions and the State Treasury in a convenient manner, without restriction in quantity, irrespective of the place of residence, without having to pay fees and without requiring any procedures or paper whatsoever.

2. For the money that are torn off or damaged by fire, moldiness, termite destruction or mouse biting, the owner must send an application explaining the reason to the State Bank, credit institutions or the State Treasury so that replacement may be considered as provided for by the State Bank. The owners who are allowed to change the money must pay a fee as prescribed by the State Bank in conformity with the prescriptions of the State on charges and fees.

3. For the money that are damaged by writing, drawing, cutting, tearing or deforming, if it is judged free from sabotage activities, they shall be considered for change as stipulated in Item 2 of this Article; if it is suspected that the damage is caused by sabotage acts, the State Bank, the credit organizations and the State Treasuries shall temporarily confiscate them and coordinate with the police office to investigate and handle.

Article 17.- When the Prime Minister decides to withdraw the money which have been suspended from circulation or announces the circulation of the new money, the State Bank shall have to announce widely on the mass media on the following:

1. The policy of the Government to replace part or all the kinds of money in circulation;

2. The form, procedures and time of issuing new kinds of money; the time-limit for the withdrawal of the kinds of money which are suspended from circulation uniformly in the whole country;

3. Characteristics, denominations, color, size, weight of each kind of new money to be issued together with its specimen;

4. The rate of change of the new money compared with the money suspended from circulation, if any.

Article 18.- The State Bank shall report to the Prime Minister and at the same time send a report to the Ministry of Finance on the issue, withdrawal and replacement of different kinds of money periodically in each quarter, each year or unexpectedly.

Chapter IV

RESPONSIBILITY OF THE CONCERNED MINISTRIES AND PEOPLE'S COMMITTEES OF VARIOUS LEVELS

Article 19.- The Ministry of Finance shall have:

1. To inspect the execution of the statute on the specialization of issuing, withdrawing and replacing money as prescribed in this Decree.

2. To inspect and direct the system of State Treasuries to carry out the related regulations in this Decree.

Article 20.- The Ministry of Public Security shall have:

1. To direct the police at various levels to assume the prime responsibility and coordinate with the State Bank of the same level to investigate and conclude on the acts of destroying money, forging, transporting, storing and circulating faked money in order to handle them according to law.

2. To organize the evaluation of objects suspected to be forged money or destroyed money when requested.

Article 21.- The People's Committees at various levels shall have:

To direct the specialized branches to carry out education and mobilization of the people in the sense of preserving and protecting the Vietnamese currency and fighting against the acts of destroying money, forging, transporting, storing and circulating forged money.

Chapter V

REWARDS AND HANDLING OF VIOLATIONS

Article 22.- Each year, the State Bank shall consider or ask the competent authority to consider achievements to the units or individuals with outstanding records in the implementation of this Decree.

Article 23.- Units or individuals that violate this Decree shall, depending on the character and extent of the violation, be disciplined, subject to administrative sanctions, pay compensation for the damage or be examined for penal liability as prescribed by law.

Chapter VI

IMPLEMENTATION PROVISIONS

Article 24.- This Decree takes effect 15 days after its signing. The earlier regulations which are contrary to this Decree are now annulled.

Article 25.- The Governor of the State Bank, the Minister of Finance and the Minister of Public Security shall, within the ambit of their respective functions and duties have to guide and inspect the implementation of this Decree.

Article 26.- The Ministers, the Heads of the ministerial level agencies, the Heads of the agencies attached to the Government and the Presidents of the People's Committees of the provinces and cities directly under the Central Government shall have to implement this Decree.

On behalf of the Government

Prime Minister

PHAN VAN KHAI