Is the 500 dong banknote still in circulation?

The 500 dong banknote is still in circulation but is rarely used.

Regarding whether the 500 dong banknote is still in circulation, the State Bank of Vietnam (SBV) has issued a document clarifying: Although the 500 dong banknote is still used in transactions in some localities, the volume is not large (such as for paying at supermarkets, hospitals, and ferry tolls...).

Each year, the State Bank of Vietnam (SBV) will base its calculations on the cash needs of the economy (both in terms of value and denomination structure) to determine the amount of money to be printed, minted, and the denomination structure of the banknotes to be issued into circulation. This includes taking into account the development of cashless payment activities and the payment behavior of the people to print and issue small-denomination banknotes that match the payment needs of the economy and avoid general waste for society due to insufficient denominations for payment.

"In recent years, low-denomination banknotes (100 dong, 200 dong, 500 dong) have no practical payment value, therefore the State Bank of Vietnam has stopped printing and minting additional banknotes annually, only continuing to use the necessary amount from bank reserves, inventory, and the public."

"For other denominations of banknotes printed, issued, and supplied by the State Bank of Vietnam, the full value and denomination structure are put into normal circulation, ensuring that the payment needs of the economy are met," the State Bank of Vietnam emphasized.

The history of the 500 dong banknote.

The 500 dong banknote was first issued by the State Bank of Vietnam in 1987, after the country entered the Doi Moi (Renovation) period. At that time, the 500 dong note had a relatively high value and was widely used in daily transactions.

For many years, the 500 dong banknote has been an integral part of people's economic lives. However, over time, its value has changed. With rising inflation and increasing per capita income, the real value of the 500 dong note has steadily decreased. Today, the 500 dong note has very little value and is rarely used in daily transactions.

Although its intrinsic value has decreased, the 500 dong banknote still holds significant cultural and historical value. For many, this banknote is not only a means of payment but also a memento of the past.

Currently, the 500 dong note is still in circulation but is rarely used. Everyday transactions usually use higher denominations such as 1,000 dong, 2,000 dong, or 5,000 dong. This is because the 500 dong note is too small a value and insufficient to meet current shopping needs.

However, the State Bank of Vietnam continues to circulate the 500 dong banknote. This banknote remains legally valid and can be used for payment in transactions. Although less common, the 500 dong banknote is still used in some special cases, such as for small change or as a souvenir.

TH (according to VTC News)

Source: https://baohaiduong.vn/to-500-dong-con-luu-hanh-397602.html