No new bank notes with a face value of 500 yuan has been issued, nor is there a plan of issuing such a note, the central bank, People's Bank of China announced,the People Daily Overseas Edition reported on Aug 18.

Rumors that 500 yuan notes will be issued have spread quickly on some websites and foreign media. An official at the central bank denied the rumors and warned that such false information will harm the circulation of the currency and impact financial activities. Any orgnizations and individuals who spread it will be punished in accordance with related laws and regulations.

"When issuing new bank notes, the inflation rate should be considered. In China, it is below 3%, so it's far from necessary to issue the 500 yuan note," said Ge Hongling, professor at the School of Economics of Beijing Technology and Business. "Besides, e-business helps people get rid of paper money in transactions."作文地带整理

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