Thursday, May 15, 2008

Zimbabwe Introduced $500 Million, $5 Billion, $25 Billion and $50 Billion Notes

HARARE (Reuters)
Thu 15 May 2008, 7:35 GMT

HARARE (Reuters) - 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 December 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.


Idea said...

look like a lot of money but the value is low...

dorancoins said...

Zimbabwe's currency situation is, to put it mildly, a case of where "how high is up" meets "how low can you go"! Only when Mugabe is out and things there are straightend out will these notes will be only a memory.