The State Bank of Vietnam shall establish the issue reserve funds

According to Article 9 of Decree No. 40/2012/NĐ-CP of Vietnam’s Government, the State Bank shall establish the issue reserve funds and issue operation funds in the system of the State bank. To be specific:

- Issue reserve funds shall be managed at Central money vaults and money vaults provincial branches of the State Bank;

- Issue operation funds shall be managed at money vaults of the State Bank's Transaction Center and money vaults of provincial branches of the State Bank.

Sources of issue reserve funds and issue operation funds:

- An issue reserve fund is provided by:

+ Newly printed and minted money from money printing and minting facilities;

+ Money from issue operation funds.

- An issue operation fund is provided by:

+ Money from issue reserve funds;

+ Money collected from circulation.

Moreover, depending on the demand for cash of the economy and currency stabilization requirements, the Governor of the State Bank obtain the decision from the Prime Minister on the issuance of new kinds of money, including:

- The new denominations;

- The time and methods for issuing new kinds of money.

The State Bank shall announce the following contents on means of mass media:

- The Government's decision on the issuance of new kinds of money;

- The time and methods for issuing new kinds of money;

- The denominations, sizes, weight and other features of each kind.

View more details at Decree No. 40/2012/NĐ-CP of Vietnam’s Government, effective from June 26, 2012.

Le Vy

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