B3342, China Reconstruction Bond Loan, Three Banks 5 Dollars, 1944

B3342, China Reconstruction Bond Loan, Three Banks 5 Dollars, 1944.

Fine condition, please refer the picture, unissued.

Issued in 1944 by three banks of China. The face value is 5 China’s Dollar.

It is a kind of government bond, but it can be circulated in the market as legal banknotes. It is the emergency notes issued during the war, to solve the fiscal problems, without leading to inflation.

The interest rate is different from different duration.

Duration half year: 6% annum.
Duration 1 year: 7.1% annum.
Duration 2 years: 7.95% annum.
Duration 3 years: 9.98% annum.