(Yicai Global) July 5 -- The new yuan bills and coins that the People's Bank of China plans to put into circulation on Aug. 30 will not lead to inflation, according to the central bank.

The introduction of the new tender, the fifth series of the physical yuan, will be a straight old-to-new swap and will not increase the amount of cash in circulation, the PBOC said on Weibo yesterday after citizens questioned the need for new bills.

The new set of banknotes and pennies will include CNY50 (USD7.27), CNY20, CNY10 and CNY1 banknotes with enhance anti-counterfeiting, and CNY1, CNY0.5 and CNY0.1 banknotes. One 10th of a yuan is known as one jiao.

While many people are now accustomed to non-cash payments -- China has one of the world's largest mobile payments markets -- cash will remain important, especially in remote areas, the central bank said.

Editor: James Boynton