Zimbabwe introduces $10m note

Inflation-hit Zimbabwe is introducing a 10 million Zimbabwe dollar note today in an effort to end chronic cash shortages.

Inflation-hit Zimbabwe is introducing a 10 million Zimbabwe dollar note today in an effort to end chronic cash shortages.

The 10 million Zimbabwe dollar note is ten times greater than its previous largest denomination, and one million and five million dollar notes are also being issued.

The highest existing note, introduced last month, is for 750,000 Zimbabwe dollars.

The new 10 million note is the equivalent of about €2.65 at the dominant black market exchange rate. A hamburger at a cafe costs about 15 million Zimbabwe dollars or €3.97.

READ MORE

That hamburger has trebled in price this month amid shortages of bread, meat and most basic goods.

Zimbabwe faces the world's highest official inflation of an estimated 25,000 per cent, although financial institutions say real inflation is closer to 150,000 per cent.

Reserve Bank Governor Gideon Gono said with higher denomination bills businesses might be tempted to again raise prices of scarce goods.

He said special arrangements were being made to pay soldiers, police and other uniformed services "because it is not desirable to see them queueing for cash".