Zim Online

by Wayne Mafaro Friday 04 April 2008

HARARE – The Reserve Bank of Zimbabwe (RBZ) has introduced a new Z$50
million note to deal with rampant shortages of cash in an economy that is
also grappling with the world’s highest inflation rate of over 100 000
percent.

The new note is part of bearer cheques that were first introduced by the
central bank at the height of cash shortages about four years ago.

The Z$50 million note is expected to be introduced on the market today after
the RBZ also increased the maximum withdrawal limit for individuals to $5
billion a day.

The introduction of the $50 million note graphically captures the depth of
Zimbabwe’s unprecedented economic crisis. Fifty million dollars is enough to
buy two loaves of the cheapest quality bread in Zimbabwe.

Cash shortages which had disappeared in January following the introduction
of the $10 million note had resurfaced over the past month as Zimbabwe’s
economic crisis continued without let-up.

Zimbabweans have battled severe cash shortages over the past four years due
to an economic crisis described by the World Bank as unprecedented for a
country not at war.

In addition to cash shortages, Zimbabweans are also grappling with shortages
of virtually every basic survival commodity, essential medicines, fuel and
foreign currency. - ZimOnline