Reserve Bank of Zimbabwe introduces new bank notes

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Less than a month after it introduced a ZW$10 billion dollar note, theReserve Bank of Zimbabwe (RBZ) has announed the introduction of  20 and  50 billion dollar notes Saturday, ostensibly, "for the convenience of shoppers". 
  
  
 


Patrick Chinamasa, who was appointed acting Finance Minister a week ago by Robert Mugabe, made the announcement  in a statutory instrument contained in an extraordinary government gazette published yesterday in accordance with section 40 of the RBZ act.

In recent weeks as the US dollar become wildely used in Zimbabwe, the Zimbabwean dollar has fallen out of favor with Zimbabweans, with economists indicating that within another month it will become extinct.

Indeed, the days of the Zimbabwean dollar are numbered, as more and more people across the country poised to have their salaries paid in US dollars.

Only last week, the ZANU-PF government announced that all the health personnel in the country will have their salaries paid in US dollars.

Last night speaking on ZBC TV, Industry and International Trade Minister Obert Mpofu said consultations are underway to consider the possibilities of allowing all business sectors to charge for goods and services in foreign currency.

Chinamasa also scrapped cash withdrawal limits, saying that workers will be able to withdraw their money in full upon producing a pay slip. Over the months, the country suffered from debilitating cash shortages, acute shortages that were blamed on the incompetency of Gideon Gono, RBZ boss.

Though estimates vary, Zimbabwe’s inflation rate is estimated at over a trillion percent, a figure that has seen the Zimbabwean dollar lose its value by over a 15000% in the space of a single.

The RBZ last introduced another note, the 10 billion dollar note, ahead of the festive season on December 19, 2008.
The introduction of new bank notes is Chinamasa’s first policy decision since becoming the acting Finance Minister.

Post published in: Mining

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