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Q: Why doesn't China have notes higher than 100RMB?
If they do, I have yet to see them. This topic came up in class and my students told me it was because the government would be forced to increase the prices if goods and services in China if notes of 200RMB or 500RMB were issued.
12 years 15 weeks ago in Money & Banking - China
http://answers.echinacities.com/question/7545
To sum it up... small shops would have problems giving change, bigger target for copies, and would you carry around a $500 bill in the US?
rich45:
hong kong people can manage it. but then, hong kong people can do a lot mainlanders cant so. who knows
Why take out the fun of buying a new apartment with a suitcase full of red looking bills ?. Only pickpockets and those dealing with fake currency want higher denomination bills here. I can see me handling a 1,000 yuan bill to a 3 wheeler driver, or a taxi driver, he will be checking it forever before handling back my change...........
Because Chinese men have insecurity issues, so by having a large wad of 100rmb bills they feel powerful and rich (even though these are essencially $16 bills).....to validate this theory please refer to the post about Sa Jiao.
If they had 1000 bills then you would see alot of people wrapping them over a wad of 20's to look cool.
RoseGarden:
The comment is so prejudicial. Inflationary pressure would be right on the mark. Remember China is still made of up struggling middle class.
And in which country do people carry around thousand dollar bills in in the west??????
The usa? Canada? Australia? Ireland? The Uk? France? Germany? NONE, God the pompous self serving thoughts of the west sicken me sometimes. Look art all these whiners on here wanting everything in other nations to be changed to serve who? THEM. O.O
The current types of notes are enough for the currency circulation from the economic perspective. So it's unnecessary to issue notes higher than 100.
I got one once in change. It was a 1000 yuan note, but nobody will accept it and now I can't find the guy I got it off. I'm stuck with it. Like these gosh-darned magic beans.
Createach:
thumbs up and i did not even read what you posted..............LOL
cause some salaries are 1000 or even less..................imagine the highest bill is 200 and your salary by the end of the month is five notes of that bill............what will you feel?!!!!!...........LOL.....am thinking in a dimensional way......not support with economics and finance shit .......... but still i have a point here................LOL
I think the basic reason is no-one has offered a valid, reason / argument why they should or need to. Plus the counterfeiters would have a field day.
I don't think it's such an unreasonable suggestion.
Inflation and wage growth have been enormous in China over the last decade, but unless I'm much mistaken the 100 yuan note has been the highest denomination for longer than that.
Surely the value in goods and services of a 100 quai note was much higher when it was first introduced than it is now. I'm no economist by any means, but introducing a 200 quai note in the next few years would merely put the purchasing power of their highest value note back on par with the 100 quai note 10-15 years ago... surely? I guess the reason people don't want it is as mentioned above, the ego satisfaction of carting around a whole shedload of cash.
A 500 or 1,000 quai note would be excessive, I think.
And IcomefromJidu.... you, sir, are a tool. Derek asked a question. In a questions forum. Unbelievable!!! As for carrying around thousand-dollar bills; the largest denomination that we have in Australia is (and the US also has) a $100 dollar note. That's more than six times the value of the highest value Chinese note in direct exchange. In any case, we tend to pay for large purchases with plastic or direct transfer, rather than the bundles of money more favored in China. Use your logic.
Alot of good answers with the fake currency etc but for me those 100 bills are wicked especially when you get paid and theres a wad of red notes i wouldn't change it.
