Proposal of issuing RMB 500 yuan bills |
China Net March 11 reports, the largest denomination of RMB is too small, 100 yuan notes can no longer meet the rapid growth of economy. CPPCC national Committee member, Chairman of the Board at Hong Kong Yu Zhen Holding Group Co. Ltd. Chen Zhendong (陈振东) submitted a proposal at the CPPCC National Committee yesterday that the time for issuing 500 yuan RMB notes has come.
The rumor of 500 yuan design which has been on the Internet since 2007 Currently, the largest denomination of China’s yuan is too small; one hundred yuan has been issued for 23 years which is difficult to adapt to the economic development needs.
“Cash denominations are too small for the significant increasing cash transactions in the society, which is a waste of time for the financial institution and the people.” Chen Zhendong used bank Automatic Teller Machine (ATM) as an example. “The machine cash box normally holds hundreds of the largest denomination of the notes, during a normal business day on average there are 50 to 60 withdrawals, and an ATM can only supply money for half of a day. If the bank ATM needs to be refilled twice a day, it potentially increases human and material resources.”
He said issuing 500 yuan large note not only can save time on the socioeconomic operation, but also can reduce the production costs on printing currency.
Chen Zhendong made clear that the size of the denomination in currency is not necessarily connected with inflation. According to China’s economic growth, residences’ income, cost of living and to compare with developed counties’ large denomination bank notes, China can first issue RMB 500 yuan face value notes, then issue 1,000 yuan face value notes accordingly.
“When launching the 500 yuan large denomination notes, the volume can be properly controlled, first start with the southeast coastal areas then circulate into the whole country.” Chen Zhendong said.
The current largest bill: 100 Yuan