Date
17 December 2017
Netizens have been circulating pictures of what they say could be new large-denomination banknotes in China. The central bank has dismissed the claims. Photo: Weibo
Netizens have been circulating pictures of what they say could be new large-denomination banknotes in China. The central bank has dismissed the claims. Photo: Weibo

China refutes reports on large-denomination banknotes

The People’s Bank of China (PBoC) has no plans to issue larger denomination banknotes this year, Legal Evening News reported Friday, citing an unidentified official from the central bank.

The official’s comment in response to some media reports that said the PBoC may issue 500-yuan or 1,000-yuan banknotes in the second half of 2014. The reports had cited He Zhicheng, chief economist with Agricultural Bank of China, as they put forward the possibility of large-denomination currency.

With rising inflation, it cannot be ruled out that the central bank will ease monetary policies, He said, adding that issuing large-denomination banknotes could be part of the policy measures.

The economist’s remarks had fueled a fierce debate on social network platforms, and some netizens have circulated pictures of possible new currency notes, including a pink-colored 1,000-yuan note and a brown 500-yuan bill, the report said.

Ge Hongling, a professor with Beijing Technology and Business University, was quoted as saying that inflation is a key indicator that will determine whether the government will issue new currency notes. But as of now, the consumer price index growth, which is under 3 percent, is still low, he said.

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