Yangon  - Myanmar's central bank has issued a new 5,000-kyat bill that is to go into circulation Thursday, state media reported.

The bank's announcement Friday of its release of Myanmar's highest denomination note came at a time when inflation has been rather stable in Myanmar, one of the world's poorest countries.

The black market rate for the kyat is now 1,100 to the US dollar, compared with 1,200 kyat to the dollar two years ago.

There is speculation that the issuing of the 5,000-kyat notes might lead to inflation, followed by protests that would give Myanmar's ruling military junta an excuse to postpone a general election scheduled next year, observers in Yangon said.

All other currency notes, including the 1,000-, 500-, 200-, 100- and 50-kyat denominations, remain in circulation.

Under former military strongman Ne Win, Myanmar experienced several "demonetizations," in which old denominations would be made worthless and be replaced by odd notes such as 45 kyat.

There have been no demonetizations since 1988 when deteriorating economic conditions including a massive demonetization of nearly half the nation's currency, led to nationwide anti-military protests. (dpa)