Central bank denies 500-yuan notes
(Xinhua)
Updated: 2006-06-07 09:10
China has no plans to issue bank notes with a face value of 500 yuan
(US$62.5), 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 bank note.
"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
inflationary fears.
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.
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