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Chinese legislator proposes 1,000-yuan banknotes

By (Xinhua)
Updated: 2009-03-12 11:29

A Chinese lawmaker has proposed that the central bank should issue banknotes with a nominal value of 500 yuan ($73) 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.

Chinese legislator proposes 1,000-yuan banknotes

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.

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Chinese legislator proposes 1,000-yuan banknotes