With inflation estimated to be way over 100 000 percent, Zimbabweans can not cope with the large number of bank notes that they have to carry around for day to day transactions. To save the people from these troubles, the reserve bank of Zimbabwe introduced a new $50 000 000.00(about 50 pence) bank note.
It has become normal for people of Zimbabwe to move around with ruck sacks and plastic bags to carry around all those loads of bank notes. That is why the ‘concerned’ reserve bank has introduced the new higher denomination bank note.
Banks have also increased the maximum daily cash withdrawal from $500 million to $1 Billion(about £10). Hopefully this would also help people who spend long hours queueing for cash in banks.
It has become normal for people of Zimbabwe to move around with ruck sacks and plastic bags to carry around all those loads of bank notes. That is why the ‘concerned’ reserve bank has introduced the new higher denomination bank note.
Banks have also increased the maximum daily cash withdrawal from $500 million to $1 Billion(about £10). Hopefully this would also help people who spend long hours queueing for cash in banks.
But is the continuous introduction of new higher denomination bank notes the solution to Zimbabwe’s cash problems?
Does the reserve bank have control of the country monetary situation? They seem to have more of a reactive policy rather than being proactive policy. What could be the solution to these monetary problems in Zimbabwe?
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Wed, Apr 9, 2008
Money Matters