Tuesday, March 24, 2009
Chinese 1, 2 and 5 Jiao, 1, 5 and 10 Yuan notes overprinted "FOR USE ONLY IN NANSHA ISLANDS" in Chinese and in English have recently surfaced. The reverse of each note also bears a red chop that refers to the South China Sea Fleet.
These islands are claimed in whole or in part by the Peoples Republic of China, Taiwan, Vietnam, the Philippines, Malaysia and Brunei. About 45 islands are occupied by relatively small numbers of military forces of the various claimants.
It’s unusual for Nansha Islands to issue their own currency since they have no indigenous inhabitants . I suspect these notes are spurious, an attempt by the Chinese to legitimize their sovereignty claim.