Inside sources said RBZ governor Gideon Gono had indicated plans to introduce higher denominations to ease the cash crisis.
“After failing to contain the crisis during the Christmas holidays, there are plans to introduce more higher denominated to notes to complement the ones in circulation. This development is not going to take long,” said a source.
He said Gono was against the removal of zeroes, as he once did in 2005, as a possible solution to the ongoing cash crisis.
Gono recently introduced $750,000, $500,000 and Z$250,000 notes and announced that the Z$200,000 bill – which he said was mostly used by foreign currency traders – would be put out of circulation on January 1.
He later reversed the decision to suspend the $200 000 note, which he said was mostly siphoned out of the banking system by black market foreign currency dealers.
The moves by the Central banks have failed to ease the cash crisis as banks struggle to cope with long queues after the Christmas and New Year holidays..
Economic analysts have said the banknote crisis could only be resolved through sound economic policies, not piecemeal measures such as printing more notes. – Own correspondent
Post published in: Economy