Banknote

Central bank denies more bills on the way

PUBLISHED : Wednesday, 16 July, 2008, 12:00am
UPDATED : Wednesday, 16 July, 2008, 12:00am

The People's Bank of China - the central bank - yesterday declined to confirm whether there were plans to issue 60 million 10-yuan Olympic souvenir banknotes following last week's commemorative release.

'I'm unaware of such a plan,' a bank press official said. 'I haven't heard of any such kind of plans, neither have we received any notice about this.'

Long queues formed overnight outside mainland banks last week as people sought to snap up one of the 6 million Olympic commemorative 10-yuan bills that were issued by the central bank.

Despite limiting customers to one note each, supplies were quickly exhausted and some people complained about not being able to obtain the notes. In the following days, they were trading for 1,000 yuan on the black market although mainland banking laws strictly forbid public trading in currency.

A rumour spread on the internet on Monday that the central bank was planning to issue another 60 million notes, driving the black market auction prices for notes down to just 200 yuan each.