Soldiers roped in to keep order as $200m and $500m notes rolled out

Soldiers roped in to keep order as $200m and $500m notes rolled out

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By Torby Chimhashu
Posted to the web: 12/12/2008 17:38:11
SOLDIERS swept through the streets of Harare on Friday, seizing money from illegal currency dealers as the Reserve Bank of Zimbabwe (RBZ) announced the introduction of new $200 million and $500 million notes.

The crack army unit from One Commando which works closely with the central bank moved in after reports that the new notes had been leaked to the street dealers before banks could open on Friday.

The rifle-wielding soldiers first descended on the Fourth Street bus terminus. Witnesses said the soldiers indiscriminately beat up anyone suspected of engaging in illegal activities.

“They grabbed wads of notes in local and foreign currency before they raided the other selling points at Ximex Mall and the Copacabana bus terminus,” said one woman who witnessed the raid.

The crack army unit has been tasked with maintaining order in and outside banking halls as the government expects commotion in the withdrawal of large but worthless sums of money pumped into the market by the RBZ to ease a cash shortage ahead of the festive season.

In Glen View Area 8, at the Furniture Complex, scores of dealers were sent scurrying for cover as the soldiers went on the rampage. Traffic was disrupted for almost an hour as motorists panicked during the melee.

The new higher denomination bank notes come as Zimbabwe struggles to cope with the world's highest inflation and crippling currency shortages.

The half-billon note is only worth about US$10. The 200 million dollar bill was introduced for the "convenience" of the public, the RBZ said in a statement.

Finance minister Samuel Mumbengegwi announced the new bills in a government gazette, bringing to 29 the number of new notes put into circulation this year alone.

Just last Thursday, Zimbabwe introduced a 100 million dollar bill that at the time was worth 14 US dollars. One week later, it's worth less than 50 cents.
Zimbabwe's highest inflation was last estimated in July at 231 million percent but is now believed to be much higher.

The central bank struggles to print money fast enough to keep pace with prices that rise several times in a day.

Due to currency shortages, cash can now only be withdrawn once a week from banks. Ordinary people can take out 500 million dollars a week while companies are permitted to withdraw 50 million dollars.

Winding queues in banks are commonplace in Zimbabwe as people take hours to withdraw money which is still not enough to see them through the day, while others sleep outside banks to get money the next day.
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