In an effort to end the current cash crisis affecting the country, Zimbabwe’s central bank has introduced new higher denomination bank notes. In a televised speech governor Gideon Gono announced that the $200 000 bill, currently the highest value note and equivalent to $6.60 US at the official rate and $0.12 US at the widely used black market will be phased out by January one. The new notes will start circulating Thursday. The cash shortage had seen some people sleeping outside banks in the hunt foe cash.
The reserve bank governor has always blamed the cash crisis on dealers hoarding cash. However it seems there was just no enough notes in circulation. Banks were giving out a maximum of $5 million cash per person and considering how many people were withdrawing money everyday. It shows there was just not enough notes in circulation given that there is no foreign currency to buy the paper to print money.
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December 26th, 2007 at 1:57 pm
Zvakaoma!