RBZ rolls out new banknotes, raises withdrawal limits

RBZ rolls out new banknotes, raises withdrawal limits

• Era of deregulation in financial services is over

• 2004 liquidity crisis: has RBZ been vindicated?

• RBZ suspends RTGS system

• RBZ issues $10,000 and $20,000 notes

• Elton Mangoma: Monetary regulations harming the poor

• Tsvangirai surveys banking chaos

• RBZ rolls out new bank notes, coins

• RBZ slashes 10 zeros, unveils new currency

• Mumbengegwi threatens banks

• Text of RBZ statement on cash situation and stabilisation measures

• Zimbabwe introduces $10 million note

• Prosecutor wants RBZ investigated

• Cash 'baroness' escapes with a fine

• Mawere: Unpacking the Butau-Gono forex scandal

• Mugabe's spokesman says UK harbours wanted fugitives

• Chaos as RBZ extends $200 000 notes lifespan

• Fugitive Zimbabwe MP flees to Britain

• Magistrate attacks police, RBZ in botched $10bln bust probe

• 'Cash baroness' fingers Reserve Bank advisor in Z$10bln bust

• Police hunt financial crimes cover-up MP

• Zimbabwe woman held with Z$10 billion

• Banks work overtime as currency deadline nears

• Gono threatens to shut down errant banks

• Long queues as Zimbabwe runs out cash

Posted to the web: 05/11/2008 23:16:12
ZIMBABWE issued three new denominations of banknotes on Wednesday, including a one-million-dollar note, as the impoverished country struggles to cope with runaway inflation.

The Reserve Bank of Zimbabwe (RBZ) said the new 100,000-dollar, 500,000 dollar and one-million-dollar banknotes would be available immediately.

The move comes less than a month after the central bank introduced 50,000-dollar banknotes, hoping they would be large enough for Zimbabweans to afford the skyrocketing prices of basic goods.

However, the 100,000 banknote is now worth only one US dollar on the widely-used parallel black market and is only half the amount needed to buy a loaf of bread.

Twenty-four new currency denominations have been introduced in Zimbabwe this year alone.

Also Wednesday, the RBZ raised the daily cash withdrawal limit for individuals to Z$500,000 from Z$50,000.

The withdrawal limit for companies was raised to Z$1 million a day from Z$10,000.

The southern African nation is suffering from foreign exchange and fuel shortages and the majority of the population live below the poverty line.

To keep pace with the rising costs, shops sometimes change the prices of goods more than twice a day while long meandering queues have become a familiar sight at banks as depositors seek to withdraw cash which is rapidly losing its value.

While the currency, once on a par with the British pound, is in freefall, unemployment is a staggering 80 percent.

The government has tried several measures — including price controls and even striking off 10 zeros from the country’s currency — to try to rein in the galloping inflation. - AFP
JOIN THE DEBATE ON THIS ARTICLE ON THE NEWZIMBABWE.COM FORUMS
newsdesk@newzimbabwe.com