Back to Index

Zimbabwe adds 500-mln dollar note as prices rocket
Reuters
May 15, 2008

http://africa.reuters.com/business/news/usnBAN530861.html

Zimbabwe's central bank introduced 500 million Zimbabwe dollar notes worth just $2 on Thursday in the latest sign of spiralling hyperinflation, only a week after issuing the 250 million bill.

The new highest denomination note would buy about two loaves of bread.

The central bank also introduced special agricultural cheques in 5 billion, 25 billion and 50 billion Zimbabwe dollar denominations to facilitate payments to farmers during the current selling season.

Farmers normally have to carry huge stacks of bank notes after selling their produce to state agencies, while consumers often carry large piles of cash with them for simple daily transactions.

The country is currently in the middle of the tobacco and maize marketing season.

"The Reserve Bank of Zimbabwe is pleased to announce the introduction of special instruments to cater for the marketing needs of our farmers in the form of 'special agro cheques' whose lifespan will run through Dec. 31 2008," the central bank said in a statement.

It said the cheques were freely tradable and would start circulating on Tuesday, while the new currency notes are available immediately.

Zimbabwe, which has the highest inflation rate in the world at around 165,000 percent, has been beset by long queues at banks as consumers seek banknotes to stock up on basic goods, the prices of which are constantly rising.

The Zimbabwe dollar, which had been officially pegged at 30,000 to the U.S. dollar before exchange rules were relaxed recently, currently trades at about 250 million to the greenback.

Zimbabweans had hoped elections on March 29 could help put an end to the country's economic meltdown, which has also led to 80 percent unemployment, chronic food and fuel shortages, and a flood of refugees to neighboring states.

But the parliamentary election results have been disputed, and a run-off for the presidency has been delayed and is now due to take place by the end of July.

Please credit www.kubatana.net if you make use of material from this website. This work is licensed under a Creative Commons License unless stated otherwise.

TOP