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Why the biggest currency in China is 100 RMB???

Why the biggest currency in China is 100 RMB???

Postby hlbb » Thu Jun 30, 2011 7:52 am

Do your guys hate the Chinese currency? The biggest paper money is only 100 RMB and It is only worth about 15 USD and CHINA is a currency society so you have to bring a lot of those paper with you all the time. Why CHINA don't issue 500 RMB and 1000 RMB currency. It is almost the same cost to print a 100 RMB paper and a 1000 RMB paper, but doing so you save 90% when issuing pension to those seniors.

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Re: Why the biggest currency in China is 100 RMB???

Postby tylerdurden » Thu Jun 30, 2011 8:01 am

Now that's a good topic for a thread, hlbb.

I assume it's to make blatant bribery, graft and tax evasion just slightly more difficult.

Not that anyone seems to care. During my early days here, I remember going into a bank to deposit about 40,000 rmb. I was terribly nervous holding such a large amount of cash. Then a little old lady parked herself at the adjacent teller window and proceeded to pull from a tatty fake LV bag about a cubic metre's worth of bundled pink Maos which she calmly handed over to the teller.

People here walk around with bags stuffed to the hilt with cash, and they don't give it a moment's thought. There are plenty of countries where they'd be knifed and left for dead within a stone's throw of their front door if they tried that.
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Re: Why the biggest currency in China is 100 RMB???

Postby (K)(G)(E) » Thu Jun 30, 2011 8:56 am

I meant to post this question to find out whether 100RMB is indeed the largest bill here. Cash is king in this country. And when people don't trust plastic/electronic payments I wouldn't be surprised to see them do that. I often see people pull out dozens of 100 bills out of their wallets in restaurants.

Conversely, has anyone ever seen any bills bigger than 100 back in the states? Was there for more than 20 years and I never came across any of them.
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Re: Why the biggest currency in China is 100 RMB???

Postby sambista » Thu Jun 30, 2011 9:20 am

there used to be larger u.s. bills, from $500 to $10,000! (which brings to mind a fun movie, "the mighty quinn," but i digress.) according to wikip., they stopped printing them in 1945, though they're still considered legal tender.

http://en.wikipedia.org/wiki/Large_deno ... s_currency

the 100rmb is kinda weird, i have to admit, even though the top u.s. bill is also $100. a $100 bill is a lot of money, and so is 100rmb. but you can't withdraw a smaller bill from the atm - that's what's weird to me.
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Re: Why the biggest currency in China is 100 RMB???

Postby mikkeydee » Thu Jun 30, 2011 9:33 am

I remember Zhou En Lai (former prime minister, at Mao's generation) once told a high official during a meeting of the Asian countries, being asked "how do you control inflation in China",
- do NOT issue large denomination currency - as one of the key measures.
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Re: Why the biggest currency in China is 100 RMB???

Postby Michael » Thu Jun 30, 2011 9:37 am

I assume it's to make blatant bribery, graft and tax evasion just slightly more difficult.

Even more making fake bills more difficult. Can you imagine the printing press cranking out 1000 rmb notes?
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Re: Why the biggest currency in China is 100 RMB???

Postby PureXTC88 » Thu Jun 30, 2011 9:50 am

Yeah I'm pretty sure that it's so that people cannot forge larger bills. There is enough counterfeit RMB's floating around as it is, imagine if they had 500 and 1000RMB bills! This reminds me of an old friend of mine back home, he was counterfeiting Canadian $100. He is Canada's most successful counterfeiter:

http://en.wikipedia.org/wiki/Wesley_Weber

http://www.history.ca/ontv/titledetails ... leid=87300

http://www.viprasys.org/vb/f65/meet-wes ... ter-53423/
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Re: Why the biggest currency in China is 100 RMB???

Postby Chavster » Thu Jun 30, 2011 10:29 am

It's also a political choice. The Chinese government wants its currency to appear valuable to its people. Nothing makes your currency look weaker than throwing around 1000 kuai notes. 100 rmb is still a lot of money to somebody who doesn't live in a tier 1 city. There's nothing worse then getting caught behind someone at a bank machine who is taking out 20,000 rmb for a big purchase.
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Re: Why the biggest currency in China is 100 RMB???

Postby MoonOverMiami » Thu Jun 30, 2011 11:05 am

Can't they do it with polymers...aren't they suppose to be harder to counterfeit?
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Re: Why the biggest currency in China is 100 RMB???

Postby mikkeydee » Thu Jun 30, 2011 1:35 pm

Chavster wrote:It's also a political choice. The Chinese government wants its currency to appear valuable to its people. Nothing makes your currency look weaker than throwing around 1000 kuai notes. 100 rmb is still a lot of money to somebody who doesn't live in a tier 1 city. There's nothing worse then getting caught behind someone at a bank machine who is taking out 20,000 rmb for a big purchase.


exactly my point
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Re: Why the biggest currency in China is 100 RMB???

Postby lunainai » Thu Jun 30, 2011 1:46 pm

Euro have notes of 500 try to take it to one of those EU countries, even in hotels they refuse it.
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Re: Why the biggest currency in China is 100 RMB???

Postby tylerdurden » Thu Jun 30, 2011 1:48 pm

PureXTC88 wrote:This reminds me of an old friend of mine back home, he was counterfeiting Canadian $100. He is Canada's most successful counterfeiter:

http://en.wikipedia.org/wiki/Wesley_Weber

http://www.history.ca/ontv/titledetails ... leid=87300

http://www.viprasys.org/vb/f65/meet-wes ... ter-53423/



I doubt it. Canada's most successful counterfeiter is someone who doesn't have a Wikipedia entry.
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Re: Why the biggest currency in China is 100 RMB???

Postby Business_Catte » Thu Jun 30, 2011 2:45 pm

Never seen one myself but a friend who worked in a bank in Shenzhen told me banks do have 500RMB notes and they are used for interbank transfers but not permitted to circulate. It made a lot more sense 20 years ago before everything was computerized. But they still print them and use them.
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Re: Why the biggest currency in China is 100 RMB???

Postby tylerdurden » Thu Jun 30, 2011 3:11 pm

- "How are we going to transport that 4.5 million RMB over to the developer's office to buy the villa?"
- "Use an armour-plated SUV."
- "I don't have an armor-plated SUV."
- "Well, go and buy one then."
- "Good idea. How much do they cost?"
- "Oh, about 4.5 million RMB."
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Re: Why the biggest currency in China is 100 RMB???

Postby scotch » Thu Jun 30, 2011 3:17 pm

Mr Totomolo wrote:I also heard the reason of the fake 100 rmb bills to avoid having larger denominations

Specially after the super-notes from Taiwan which appeared 2-3 years ago

But the remark about the big Euros notes is also true

One of my customers asked me to return to him over-invoicing in cash
and the instruction was only 100 and 200 Euros notes, no 500 Euros

Imagine you go to Alldays, or at night with a taxi driver and your 500 rmb note .... hahaha


Do you know that around 80% of 500 euros bills in Europe are in Spain? Only useful for money laundry...
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Re: Why the biggest currency in China is 100 RMB???

Postby johnny_tropicana » Fri Jul 01, 2011 6:35 am

Toki_Wartooth wrote:Never seen one myself but a friend who worked in a bank in Shenzhen told me banks do have 500RMB notes and they are used for interbank transfers but not permitted to circulate. It made a lot more sense 20 years ago before everything was computerized. But they still print them and use them.


What I find so ridiculous about that is that 500 RMB IS only $75 USD.
In the States, the federal reserve used to use $100,000 banknotes for
interagency purposes. One recently sold for $175K. Very few known to have
ever reached public hands.
Sooner or later the Government here will enter the market with larger
denominations, or computer transfers will negate the necessity.
I remember being at a contract signing with my uncle Jim when I was
still a teenager as he represented a company buying an airplane from
Boeing. A room full of lawyers, and bankers, and two telephones
(remember the ones with rotary dialing?) The papers were signed, passed
about the room, attorneys mumbling stuff, then two of them got on the
phone with the banks involved. Even in 1970's dollars, I imagine the
bankers and attorneys billed out at $100K for the hours in the room.
Just to transmit payment before title would pass. It'll change.
Hopefully for the better.
We were meant to live for so much more
Have we lost ourselves?
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Re: Why the biggest currency in China is 100 RMB???

Postby HaroldTheIronmonger » Fri Jul 01, 2011 6:49 am

Nearly 2 years ago this rumor surfaced...

Will China Issue 500 Yuan Bank Notes?

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Would be nice, but will hardly happen...
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Re: Why the biggest currency in China is 100 RMB???

Postby (K)(G)(E) » Fri Jul 01, 2011 10:41 pm

When I first arrived I was surprised to see Mao's face on every bill here. I mean no Deng, no Zhou. They must have turned over in their graves over this. Well, at least the Chinese coins acknowledge nature.
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Re: Why the biggest currency in China is 100 RMB???

Postby daodejing » Fri Jul 01, 2011 11:55 pm

After some thought, I now think high denomination bills are not such a good idea. Chinese people need to learn to use plastic more, and more stores need to start accepting it. I've heard a few stories of people having bags of money stolen (or almost stolen). Having high denomination notes will just make it easier to carry cash. In the US a lot of people routinely carry less than $50 with them. I usually don't walk around with more than 500 RMB in cash here.

I talked to a salesman that gives kickbacks to purchasers. He said he uses US dollars as they take up less room. I guess the customer then changes them back into RMB.
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Re: Why the biggest currency in China is 100 RMB???

Postby disconbobulated » Sat Jul 02, 2011 2:00 am

Coz,That's how much a blow job used to cost!
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