Economy

China not to issue higher-denomination banknotes

(Xinhua)
Updated: 2011-01-19 09:47

BEIJING - China has no plans to introduce new higher-denomination banknotes, or a sixth set of renminbi, a senior central bank official said Tuesday.

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Ma Delun, vice governor of the People's Bank of China, dismissed rumors that the country would issue higher-denomination banknotes to ease cash shortages amid record lending.

The highest value note in China is 100 yuan ($15) at present.

The expansion in the money supply coincided with rising people's incomes, higher economic growth rates and a wider sphere of yuan circulation, Ma said, adding that increased money supplies was not related to the country's accelerating inflation.

China had 4.6 trillion yuan of banknotes in circulation at the end of last year. Also, the central bank has to print more than 900 billion yuan every year to replace worn and torn banknotes, Ma said.