“In the measures underway, the Reserve Bank plans to introduce a number of
new, higher denominations, review the cash withdrawal limits as well as
commence aggressive campaigns for increased usage of other alternative means of payment.”
The Reserve Bank of Zimbabwe has introduced new $1 million, $500
000 and $100 000 banknotes in a desperate bid to ease the recurrent cash
shortages plaguing the inflation-ravaged economy.
The bills will officially come into circulation on Friday, although they
were already on the foreign currency dealers market this morning.
As high as they are, though, the highest bill can only buy eight loaves of
bread. The highest new note is equal to just US$6.
The new notes with be the 22nd, 23rd and 24th notes introduced by the
Reserve Bank this year alone. The central bank also said it will review cash
withdrawal limits to compensate for ever-accelerating inflation. The withdrawal limit for individuals is still $50 000 a day while that for
companies is $10 000.
In a statement last night, the central bank said: “In a market that has
become predominantly speculative, most providers of goods and services are
demanding cash as the only acceptable means of payment, penalising those
that could otherwise be willing and able to use cheques for transaction
purposes.
“In the measures underway, the Reserve Bank plans to introduce a number of new, higher denominations, review the cash withdrawal limits as well as
commence aggressive campaigns for increased usage of other alternative means of payment.”
Signs of a severe cash shortage are showing across the country as citizens
are currently struggling to access cash from their various bank and
financial institutions’ accounts.
A serious cash shortage has persisted since October 2007.
Long bank queues are once again part of everyday life in which the maximum
withdrawal limit, which people say is too little, forces them to come back
to the bank virtually daily. Bank sources hint the cash situation is poised
to deteriorate further in the coming weeks.
People wake up to join queues as early as 5am, as long queues can be seen by 6am.
