BBC News, Monday, 29 September 2008
Zimbabwean bank issues new notes
The Zimbabwean central bank has issued higher denomination banknotes in
order to battle the cash shortage caused by the world's highest
inflation rate.
New 10,000 and 20,000-dollar notes have been released to help
Zimbabweans deal with crippling hyperinflation which is said to be at
11.2 million per cent.
The central bank has issued a slew of new notes since August when it
sliced 10 noughts off the local currency.
Cash supply is so tight only Z$20,000 (US$20) can be withdrawn daily.
This has led to large queues outside banks with people hoping to be
among the first to be served before the cash runs out.
It has been hoped that a power-sharing deal between President Mugabe
and opposition leader Morgan Tsvangirai might have a positive effect on
the moribund economy but thus far it has failed to have any
considerable effect.
The two sides are yet to agree on which party should control key
ministries, such as finance, home affairs and information.
Zimbabwe once had one of Africa's most prosperous economies but its
fortunes have declined during the past decade.
Now unemployment in the Southern African country is rampant and it is
estimated that at least 80% of the population lives below the poverty
line.
