Central bank denies issuing 500-yuan notes
Updated: 2006-06-07 06:58
China has no plans to issue bank notes with a face value of 500 yuan (62.5
U.S. dollars), the People's Bank of China said.
A central bank statement quashed wide-spread on-line reports that 500-yuan
notes were in the works. Some rumour mongers even showed pictures of the fake
"The rumors could affect the normal circulation of the RMB, China's currency,
and jeopardize the financial order. This is vile behavior," the PBoC said, while
pledging to launch an investigation with the public security departments and
industry and commerce regulators.
The PBoC also called on the public to stay on guard. The largest denomination
bank note for the Chinese currency is 100 yuan.
Many financial analysts say issuing a 500-yuan note might trigger
Official figures show the consumer price index, China's leading inflation
index, climbed only by 1.2 percent in the first quarter of the year. The broad
money supply surged by 18.8 percent in the first quarter over the same period
last year, according to central bank figures.