Will 500-yuan or 1,000-yuan large-denomination RMB notes be issued in the second half? Related parties deny the statement.

He Zhicheng, senior economist at the head office of Agricultural Bank of China, said in an interview with a media outlet yesterday that 500-yuan or 1,000-yuan large-denomination RMB notes might be issued in the second half of the year. However, the person later denied having made the statement. The central bank has not yet responded to the matter.

Central bank has not yet responded

Yesterday, according to a media report, He Zhicheng said in an interview on CPI-related issues that among the stimulus policies to be introduced later, 500-yuan or 1,000-yuan large-denomination RMB notes might be issued in the second half of this year.

A reporter called the Agricultural Bank of China headquarters yesterday, and a relevant person said He Zhicheng's views do not represent those of the bank. The central bank has not yet responded to the matter.

It is understood that whether to issue 500-yuan or 1,000-yuan RMB notes was debated in the previous two years. The central bank later refuted the related rumors.

Issuing large-denomination notes may fuel inflation expectations

Guo Tianyong, a professor at the School of Finance of Central University of Finance and Economics, believes that issuing large-denomination RMB notes should be done cautiously. Currency is originally meant to make commodity exchange more convenient. Theoretically, issuing large-denomination notes can make transactions more convenient, which is beyond reproach. However, under the current situation, issuing large-denomination notes will fuel expectations of inflation and asset bubbles.

Guo Tianyong pointed out that in recent years, the domestic payment system has developed rapidly and innovatively, and the scope of payment through online and electronic channels has become broader and more convenient. On the contrary, if large payments are all made in cash, costs are high and security is low. In addition, because cash transactions leave no transaction records, they facilitate illegal acts such as tax evasion and money laundering. "From the trend of payments, we should make the greatest effort to reduce the use of cash," Guo Tianyong stressed.