Johannesburg/Harare - Zimbabwe's central bank has introduced
a bearer's cheque of 100 billion Zimbabwe dollars in a bid to ease
recurrent cash shortages bedeviling an inflation-ravaged economy.
Zimbabwe has not had formal currency since the introduction of
bearer cheques as a temporary measure in 2003.
The new bills officially come into circulation on Monday but on
Saturday they were on already on the foreign currency dealers market.
Reserve Bank of Zimbabwe (RBZ) Governor Gideon Gono said the new
notes were for 'the convenience of the banking public and the
corporate sector,' in light of the price hikes.
The official inflation rate in once-prosperous Zimbabwe now stands
at 2.2 million per cent.
'The RBZ has noted with concern the unjustifiable and incessant
general increases in the prices of goods and services. It is
therefore appealing to the business community to follow ethical
business practices as well as take an interest in the plight of the
general public,' Gono's statement of July 18 said.
Since December 2007 Zimbabwe has introduced bank notes worth
250,000 Zimbabwe dollars, 500,000 Zimbabwe dollars, and 750,000
Zimbabwe dollars, which were followed by the 1 million Zimbabwe
dollars 5 million Zimbabwe dollars and 10 million Zimbabwe dollars
notes in January, and later 25 million and 50 million Zimbabwe
dollars, and sets of five, twenty-five and fifty billion Zimbabwe
dollars in May.
The 100 billion Zimbabwe dollar note, which expires on 31 December
2008, cannot buy a loaf of bread, which now costs at least 120
billion Zimbabwe dollars, but it can purchase four oranges.
Many notes except those in denominations of billions can now found
in bins and as litter in the streets.
'The RBZ is fighting a losing battle; as long as the inflation
remains high, cash shortages will persist,' economist John Robertson
said.
'There is need to address the inflation by increasing production
so that too goods do not chase at lot of money.'
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