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Posts: 200

Shifu

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Q: Why doesn't China issue something bigger than 100 yuan notes?

Isn't it embarrassing for a country like China to have a meager 100 yuan bill as its most valuable denomination? Wouldn't it make a lot of sense to issue a 500 or even 1000 yuan notes in this day and age? It would not only make paying for expensive things a lot more convenient, but it will surely help reduce storage space needed for all those pink bills. Is there a logical reason for not issuing a higher bill? If there is, I don't know what it could be. Someone, please enlighten me!

10 years 21 weeks ago in  Money & Banking - China

 
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Posts: 3837

Emperor

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there are so many fake 100 and 50 RMB notes is circulation - think how profitable it would be if there were higher denominations. Also it means it is not so easy to transport large amounts of cash. In the EU i hear that they are going to discontinue the 200 and 500 Euro notes to make sure cash can't be smuggled easily.

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10 years 21 weeks ago
 
Posts: 821

Shifu

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In England our highest note is £50. Equivalent to approx 500 RMB give or take

nicholasba:

sweet..….in Europe we got a 500 euro noteindecision

10 years 21 weeks ago
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Nessquick:

We have CzK5000,- as highest. Its count about 250USD.  And is nicest of all of them, btw :-)0

10 years 21 weeks ago
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nicholasba:

wow…i so much miss the 1.000.000 lira of my grandad…

by the way, with this 100 rmb note everytime i got paid in cash i need a bag….:P:P

10 years 21 weeks ago
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Nessquick:

Yeah, Liras, Lei and all those was nice, 8 milions of Poland Zloty for bread loaf  ... 

10 years 21 weeks ago
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10 years 21 weeks ago
 
Posts: 9631

Emperor

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Who would be pictured on a bigger note. Mao couldn't be on the second biggest note. Of course a complete redesign af all notes could be done. 

 

Isn't it a euqlly big mystery why there is both a 1 RMB coin and note, and what's up with the 1jiao.

 

In Scandinavia we are not corrupt, cash fraud is not an issue, we have notes of up to the equivalent of 1000RMB in the three currencies in Norway, Denmark & Sweden (as well as of course the Euro notes being usable) 

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10 years 21 weeks ago
 
Posts: 1330

Shifu

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no, and i hope this wouldnt happened while im still here. It would be a suicide to get higher notes! China is NOT ready!

 

And besides, look at europe with its useless 500 euro note. Try to use it and you will understand why i said this

Red_Fox:

Nobody uses 500 € notes in Europe for daily cash exchanges in the shops or streets. The highest denomination bill used to exchange at the supermarket or boutique is 100 €.

In the U.S., nobody carries around 500 $ notes in their wallets when they go shopping. The highest denomination bill used to exchange is 100 $.

So. What is so outlandish about China issuing a proper 200 or 500  RMB note for daily usage? The current highest denomination is 100 RMB. Outdated, especially in light of spiraling costs for every consumable out there.

The OP poses a sensible question that begs a sensible answer. Do the math and think again.

10 years 21 weeks ago
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nicholasba:

you are right. Nobody uses 500 euro for daily cash (actually also 100 euro is quite rare) , but most importantly I guess very few stores would accept them. Besides then again the old question: what for?

And it seems that to you, China should issue this notes just for us and for those chinese, i guess 2%, that earns more than 10k a month....yeah, make sense.....

 

10 years 21 weeks ago
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10 years 21 weeks ago
 
Posts: 79

Governor

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imagine this:  a labor receives his monthly salary which are two 1000RMB notes.....seems sad to him..... it's likely he would be happier to see 20 1000RMB notes instead.   Bigger denomination can indicate the problem of inflation which is a problem the gov doen't want their people to notice..........

Red_Fox:

Imagine this: you, an English teacher, receive your monthly cash pay of 8,000 RMB in 100 RMB bills. The accountant then asks you to count the bills to ensure you are not being overpaid (not underpaid, but overpaid). So, you count to 80. Fun, right? Or maybe you're lucky enough to command a little more dough for your services, say, 12,000 RMB and you're paid in cash. Count 'em. 120 pinkies. More fun.

Wouldn't you rather have larger denominations to cut down on your stupid, humiliating counting of grey money in front of some asshole accountant? Sheesh.

10 years 21 weeks ago
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nicholasba:

picture this:

a government that being aware that the large majority of his citizen earns up to 5k (and just in 1th rate cities such as shanghai, bj and so on) starts to issue largest notes for its minority of rich guys and foreign teachers…wow! What a wise government! really! honestly, even if i have to count my money for around 3 minutes every time, im fine with it. Really

10 years 21 weeks ago
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10 years 21 weeks ago
 
Posts: 204

Governor

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When paying for a new TV or something that expensive, they use plastic, not money.

Nessquick:

not much often, you can see many people going to buy gold or so,  with bags loaded with cash..

10 years 21 weeks ago
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Delphine86:

I disagree. I see people paying with cash more often that I see credit cards. When moving house, these 100 bills are especially annoying since no landlord has a credit card reader. I have had to pay several thousand yuan in cash for the housing deposit which took forever to count. It's very annoying.

10 years 21 weeks ago
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10 years 21 weeks ago
 
Posts: 2

Governor

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HAHA,WHY DOES THE US ONLY HAVE A $100 NOTE!!!!???  I HEAR

THATS ITS THE MOST WIDELY COUNTERFEITED BILL IN THE

WORLD!!!!?? WHY???

STEVE

AUST.

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10 years 16 weeks ago

ok

 
Posts: 298

Governor

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I think the 500 euro note is a perfect representation of how disconnected from any sort of reality the Euro gov is. A single piece of anonymous paper that can represent in itself half a month of labour for some is absolutely ridiculous. It has no justification whatsoever except making laudry easier than ever.

 

I think something as reasonnable as 100 yuan is perfectly fine, though tedious sometimes, especially in a country like China. Rumours about new notes come and go regularly but nothing new so far.

Scandinavian:

Actually, in Europe, the 500€ note is very useful for Chinese "businessmen" to transfer their ill-gotten money out of Europe. Rolled up and put in chocolate boxes you can carry a lot of money on a flight from EU to China, then go to your local bank and exchange them. 

 

That being said. There are several EU countries where the minimum monthly salary exceeds €500, two or three-fold. But yeah. If you live in Albania and have a low paid job, then 500€ takes months to earn. 

If you look at this list http://en.wikipedia.org/wiki/List_of_sovereign_states_in_Europe_by_minimum_wage you'll see that Denmark, Norway and Sweden are listed as blanks. 500€ buys you a cucumber in Norway. (here using the power of exaggeration to explain my point, actually in Norway you can get several cucumbers for 500€) 

10 years 16 weeks ago
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TMaster:

That's why I said "half a month", on a very rough optimistic average you can say that 500€ represents half a salary in Europe, sometimes a bit less, sometimes a lot more, I know it's not that easy. But anyway, point is, I see absolutely no basis - other than elites facilitating their own laundry with the help of a bunch of bureaucrats thinking they are planning the future - on which any society would like to put that much value on a piece of paper, it just makes no sense, and if China gets something right, it's probably keeping a hundred as the biggest note.

 

Though I'm not sure they do that for this very reason.

 

 

10 years 16 weeks ago
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Scandinavian:

China will be doing reforms of the financial sector specifically to avoid capital outflow. A lot of money leaves China every year. The coming reforms will make it legal for Chinese citizens to move more money out of the country, but will require a paper trail. I guess the idea is to combat those who illegally move large amounts out of the country. Keeping the 100RMB note as the biggest, certainly makes it more difficult to smuggle cash out of the country. 

 

I could speculate that the real reason is that the system is not very proactive but rather reactive. The government wouldn't do anything to help the people unless it helps itself in doing so. A 200RMB note would probably help a lot. 

10 years 16 weeks ago
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TMaster:

I agree with you on every part.

And on this, I'd say that I hope western governments will be smart enough to limit drastically the number of assets (especially on real estate) that can be owned by Chinese citizens on foreign territories and their consequences on immigration policy. Something like the double standards that exist here for foreigners would fit perfectly, especially when China claims reciprocity whenever it can. Because the "buy stuff, be an immigrant" thing is starting to be a real trend that WILL be nefarious if not regulated.

10 years 16 weeks ago
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10 years 16 weeks ago
 
Posts: 372

Governor

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In the US our most common biggest note is $100 which is the equivalent to about 600 yuan, so a 500 yuan bill would make more sense to me. About 8-10 years ago i use to see some $500 bills every now and then at the bank and sometimes at the grocery store. Haven't seen any since, but that would be the equivalent of about 3000 yuan which would be as ridiculous as a 100 yuan bill lol

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10 years 16 weeks ago
 
Posts: 915

Shifu

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Oh, well. Counterfeiting is indeed a problem in China. I've never seen such scrutiny of "high-value" notes in all my life. Supermarkets, shops, even cab drivers hold the pinkies up to the light.

What is 100 RMB? 12 euros. 16 USD. Not like the bill is gonna bankrupt the owner, be it the peasant or the emperor if it proves to be false.

Perhaps the Chinese treasury or whoever prints the notes could use a better quality paper with foolproof anti-counterfeiting seals. watermarks, metal strips, serial numbers, etc.

I remember reading some time ago about a politburo member in BJ who proposed, what was it, a 1000 or 5000 RMB note? Anyone remember that? Silly.

Still, I wouldn't mind seeing at least a 200 or 500 RMB note. ..

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10 years 16 weeks ago
 
Posts: 446

Governor

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I understand that the banks in China have access to RMB 10,000 and RMB 100,000 notes that are using for inter-bank commercial trading activities.  These notes are otherwise not in general circulation.

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10 years 16 weeks ago
 
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