China fails to print enough renminbi, central bank says

When you withdraw Chinese yuan from the bank these days, chances are the notes have just been shipped out of the money printing factory.

The People's Bank of China PBoC, the country's central bank, has increased yuan circulation by 80% in the past five years by improving printing capacity and prolonging production hours. Still, it fails to meet the fast-growing demand for wallet-ready bills, the PBoC said in a note on its website.

China had Rmb2.4 trillion $363 billion worth of cash notes in the market, excluding bank deposits, in late 2005. By November last year, the circulation had jumped to Rmb4.23 trillion. It may seem like a big increase, but the...