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Zimbabwe bank issues $10million bill - but it won't even buy you a hamburger in Harare
Daily Mail, UK
January 17, 2008

http://www.dailymail.co.uk/pages/live/articles/news/worldnews.html?in_article_id=508840&in_page_id=1811

Visit the index of articles on currency reform - Sunrise II

This is how many Zimbabwe dollars were needed to buy a loaf of bread. Forget the glitzy restaurants of New York and London: only in Zimbabwe would a hamburger actually cost millions of dollars.

The central bank of the southern African country has announced that tomorrow it will issue a 10million Zimbabwe dollars note. The move increases the denomination of the nation's highest bank note more than tenfold. Even so, a hamburger in an ordinary cafe in Zimbabwe costs 15 million Zimbabwe dollars.

The hope is that such a move will help end chronic cash shortages and disperse long, chaotic lines at banks and automated teller machines. Reserve Bank Governor Gideon Gono said in a statement 10 million Zimbabwe dollars notes will be issued tomorrow along with 1 million and 5 million Zimbabwe dollars bills.

The highest existing note, introduced last month, is for 750,000 Zimbabwe dollars.

The new 10 million note is the equivalent of about £2 at the dominant black market exchange rate. A hamburger at an ordinary cafe costs about 15 million Zimbabwe dollars (£3).

This is approximately all the new Zimbabwe $10million bill will buy you - two thirds of a hamburger. That hamburger has trebled in price this month amid shortages of bread, meat and most basic goods.

Zimbabwe faces the world's highest official inflation of an estimated 25,000 per cent. Independent financial institutions say real inflation is closer to 150,000 per cent.

Acknowledging the inflation crisis, Gono said individuals from Friday would be allowed to withdraw an increased limit of 500 million Zimbabwe dollars (£100) in a single daily withdrawal, up from 50 million (£10). He said special arrangements were being made to pay soldiers, police and other uniformed services "because it is not desirable to see them queuing for cash".

Gono said with higher denomination bills businesses might be tempted to again raise prices of scarce goods.

"If this happens the whole objective of solving the cash shortages and to bring convenience to the people will be defeated," he said. In August 2006, the central bank slashed three zeros from the nation's old currency.

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