The reality: why no more than 500 large-value bank notes in China?
on November 12, presented the new 100 Yuan, gorgeous upgraded security technology, "glory," the Arab data 100 was dubbed "local payments", but still no sign of large denomination 500, 1000.
in fact, Chinese economists have suggested that China should issue 500 Yuan, or RMB 1000 Yuan large bills in order to meet the needs of economic and social development and reduce the cost of money. But why China has no more than 500 large-value bank notes?
1. International horizontal comparison, 100 RMB is not high
compared with the world's major currencies, euro largest denomination is 500, about 3400 Yuan; Russia up to 5000 rubles, or about $ 484 million. Maximum face value of 10000 yen, about 518 million. Other dollar maximum value is 100, but about 638 Yuan. Australian dollar maximum face value of 100, or about $ 452 million. Circulation, the maximum is 50 pounds face value, about 485.
2. from the economic level, China has issued large currency conditions
in General, a country's legal tender face value size is determined by the socio-economic and financial markets, including the stage of economic development, people's living standards and purchasing power. Since 1987, China's Central Bank issued from the fourth series of the Renminbi, Yuan's biggest currency is 100 Yuan, since China's economy is already 100 times of the year, issuing large currency therefore also makes sense. Li daokui, an economist Mao yushi and had proposed that the distribution of 500 Yuan.