Zimbabwe to introduce $100 billion banknote

Zimbabwe's central bank will introduce new higher-value Z$100 billion notes on Monday as part of a desperate fight against spiraling…

Zimbabwe's central bank will introduce new higher-value Z$100 billion notes on Monday as part of a desperate fight against spiraling hyperinflation, the bank said.

Zimbabweans are suffering chronic shortages of meat, maize, fuel and other basic commodities due to the collapse of the once prosperous economy, which critics blame on President Robert Mugabe's policies, including his violent seizure of white-owned farms.

Central bank Governor Gideon Gono announced on Wednesday that inflation had surpassed 2.2 million per cent, though some economists put it much higher.

In a notice in the official Heraldnewspaper on Saturday, Gono said the Reserve Bank of Zimbabwe would introduce Z$100 billion special agro-cheques (notes), to help consumers who currently need to carry large wads of cash even for simple transactions.

"This new Z$100 billion special agro-cheque will go into circulation on Monday," the notice said.

The central bank has been printing higher denomination banknotes to keep pace with soaring prices. The most valuable bank note currently in circulation is worth Z$50 billion.

Mr Gono said he was also considering raising the amount of cash people could withdraw daily from their bank accounts. The central bank has imposed a withdrawal limit of Z$100 billion, but this is only enough for two trips on an urban commuter bus or two loaves of bread - if one can find it.

The Zimbabwe dollar, which had been officially pegged at Z$30,000 to the US dollar before exchange rules were relaxed recently, now trades at about Z$800 million to the US equivalent.