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Sign up to The Irish Times Archive (1859 - 2008)My Account »

Fri 12 Dec 2008Crisis-hit Zimbabwe unveils $10 billion note

Zimbabwe's central bank has introduced a 10 billion Zimbabwe dollar banknote, worth $20 on the black market, to try to ease desperate cash shortages, state-run media said today.

Prices are doubling every day and food and fuel are in short supply in Zimbabwe. A cholera epidemic has killed over 1,100 people and deadlock between president Robert Mugabe and the opposition has put hopes of ending the crisis on hold.

Hyper-inflation has forced the central bank to continue to release new banknotes which quickly become almost worthless.

New Z$1 billion and Z$5 billion notes were also put into circulation and the monthly cash withdrawal limit was increased fivefold to Z$10 billion.

"The increase in cash withdrawal limits is set to go a long way in improving workers' access to their money," the Heraldsaid.

But previous issues of new banknotes have done little to curb the cash crunch faced by Zimbabweans, who often line up for hours outside banks to withdraw barely enough to buy a loaf of bread.

Critics blame the economic meltdown on mismanagement by Mr Mugabe's government, including the seizure and redistribution of thousands of white-owned farms. The once thriving agricultural sector has fallen into ruin.

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