The People’s Bank of China has assured the new yuan bills and coins to come into circulation on August 30th, will not lead to inflation.
The new tender is the fifth in a series of the Yuan. People can swap the old notes for new ones, and it will not increase the amount of cash in circulation. PBOC assured the citizens after they questioned the need for new bills.
The new notes and coins include CNY50 (USD7.27), CNY20, CNY10 and CNY1 banknotes with an enhanced anti-counterfeiting security feature, and CNY1, CNY0.5 and CNY0.1 banknotes.Even though China is the largest mobile payment markets, cash is still a very important part of the economy.