The Zimbabwe Guardian (London)
4 April 2008
THE Reserve Bank of Zimbabwe (RBZ) today 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 now standing at 165 000 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 has started circulating after the RBZ also increased the maximum withdrawal limit for individuals to $5 billion a day. Along with the $50 million note, RBZ also injected a $25 million bill.
Between December last year and now, Zimbabwe's reserve bank has unveiled six new bills in denominations of $250 000, $500 000, $750 000, $1 million, $5 million and $10 million bills.
The move was a stop-gap measure intended to ease crippling cash shortages that saw most Zimbabweans spending the festive period in bank queues.
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.
Zimbabwe has been without a formal currency for the past five years.
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