Chinese legislator proposes 1,000-yuan banknotes

NPC, CPPCC Annual Sessions

2009

BEIJING, March 12 (Chinese media) -- A Chinese lawmaker has proposed that the

central bank should issue banknotes with a nominal value of 500 yuan (73 U.S.

dollars) and 1,000 yuan to save social costs.

The biggest yuan banknote now has a nominal value of 100 yuan.

Bigger banknotes will provide convenience for the circulation of Renminbi

and reduce printing costs, said He Daxin, deputy to the National People's

Congress (NPC), or the top legislative body.

"With a rapid economic development, it is common that people pay more than

1,000 yuan in one daily transaction. The Chinese people still prefer cash to

bank cards in their daily life," the lawmaker said on the sidelines of the NPC

session.

He said the country could save two thirds of money-printing costs that

currently stood at 3 billion yuan every year. "It would be a bless for the

taxpayers."

The proposed banknotes would also alleviate the burden of bank employees

who are busing counting notes everyday, He said.