Vendors 'can't be forced to take HK$1,000 notes' says Monetary Authority

The government has no legal power to force retailers spooked by a spate of counterfeits to accept HK$1,000 notes, the Hong Kong Monetary Authority says.

The HKMA made the comment in a paper submitted to the Legislative Council after high-quality fake notes based on the 2003-series HK$1,000 notes issued by the Bank of China and HSBC surfaced last month.

Many shops and restaurants have since put up notices saying that no HK$1,000 notes would be accepted, often regardless of the series.

Chinese-language media have reported that chain stores like 7-Eleven and even government departments have rejected HK$1,000 notes.

New World First Ferry Services apologised to the public for turning down payments made with HK$1,000 banknotes at all its piers during the Christmas and New Year holiday.

In its paper, the authority says that while the HK$1,000 notes are regarded as a sufficient and valid mode of payment under the Legal Tender Notes Issue Ordinance, merchants can still determine the terms of all commercial transactions, including the mode of payment.