Reserve Bank governor Gideon Gono announced weekend that government was backtracking on earlier plans to introduce a new currency by year-end.
Gono announced in his mid-term monetary policy review statement in August that the new currency would help to rein in inflation, now almost 8,000 percent, the highest in the world.
He said Operation Sunrise 2 “is coming and coming very soon” and warned businesses and individuals from keeping huge sums of money saying that they would risk losing their money.
But he was quoted in the official press here at the weekend saying: “Although the preparations (for introducing new currency) are in place, the launch is not until next year. For the people of Zimbabwe, the current battle is ensuring survival through the ability to get basic goods and services at affordable and yet viable prices.”
It is understood the biggest bill would be a Z$1,000 note while the smallest would be a Z$1 note. Gono maintains the new currency, designed and printed by a German company, Giesecke & Devrient (G&D), will return Zimbabwe to stability and convenience.
Gono has said he would give Zimbabweans 24 hours to hand in their bearer cheques for the new currency before it is “demonitised.”
The governor believes this is the only way to rein in speculation and punish black market dealers holding on to huge amounts of money.
Bearer cheques, essentially money printed on ordinary paper without any security features, were introduced in 2003 as a temporary expedient.
The largest bearer cheque currently in circulation has a face value of Z$200,000 (worth US$0,20c), meaning Zimbabweans have to carry large bundles of cash for even small purchases. – Chief reporter
Post published in: Uncategorized