Why you shouldn't bury your money

As global investors get used to a sudden depreciation of the yuan caused by China's recent revamp of its foreign exchange regime, one Chinese family are reeling from a more irreversible devaluation of their money.

A man surnamed Zhang in Muyang County of east China's Suqian City on Monday took a bag of damaged bills worth 100,000 yuan (15,700 U.S. dollars) to a local bank in the hope of getting them replaced. Managers were surprised to find that the notes were reduced to rotten, clumped-together lumps, which would have disintegrated at a single touch.

According to Zhang, his mother buried the money under the kitchen floor after wrapping it in a plastic bag and sealing it in an iron box over four years ago. Not until this summer, when Zhang was preparing to get married, did his mother recall the stash.

The family dug the money out, only to find it had been severely damaged. "My parents froze on the spot. It was their life savings from years of hard work. They just can't accept the loss," said Zhang.

The reason his mother decided to bury the money instead of depositing it in a bank remains unknown. People in rural China have long tended to hide money in secret places, especially underground. But it is uncommon to stash such a large sum.

A damaged currency specialist in the central bank's local branch examined the notes. "Under current regulations, the bills can't be redeemed," said the expert surnamed Lin.

But he promised to send photos of the currency to the provincial-level branch and ask if it can help. "After all, it's a lot of money, and we hope to help the Zhangs minimize their loss," Lin said. Endi